Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/109354 
Year of Publication: 
2009
Series/Report no.: 
ADB Economics Working Paper Series No. 164
Publisher: 
Asian Development Bank (ADB), Manila
Abstract: 
The paper examines the impact of exchange rates on foreign direct investment (FDI) inflows into the United States in the context of a model that allows for the interdependence of FDI over time. Interdependence is modeled as a two-state Markov process where the two states can be interpreted as either a favorable or an unfavorable environment for FDI in an industry. Unbalanced industry-level panel data from the US wholesale trade sector are used in the analysis and yield two main results. First, the paper finds evidence that FDI is interdependent over time. Second, under a favorable FDI environment, the exchange rate has a positive and significant effect on the average rate of FDI inflows.
Subjects: 
Basic research
technology creation
technology adoption
economic growth
JEL: 
O31
O47
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
339.05 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.