Foreign direct investment and exchange rate uncertainty in South‐East Asia

Gottschalk, Sylvia ORCID: https://orcid.org/0000-0002-8629-7209 and Hall, Stephen (2008) Foreign direct investment and exchange rate uncertainty in South‐East Asia. International Journal of Finance and Economics, 13 (4) . pp. 349-359. ISSN 1076-9307 [Article] (doi:10.1002/ijfe.355)

Abstract

We investigate the relationship between exchange rate volatility, exchange rate risk diversification and the location of foreign direct investment in the manufacturing industries of Indonesia, Malaysia, Philippines and Thailand. We found a strong role for the yen/dollar exchange rate in location decisions of the US and Japanese investors. There is evidence in the literature that Japanese firms invest in Asia to circumvent the appreciation of the yen. Our results show that the volatility of the yen and the correlation between local exchange rates and the yen are significant determinants of the US and Japanese investments in the region

Item Type: Article
Research Areas: A. > Business School > Economics
Item ID: 31923
Useful Links:
Depositing User: Sylvia Gottschalk
Date Deposited: 15 Feb 2021 10:58
Last Modified: 15 Feb 2021 10:58
URI: https://eprints.mdx.ac.uk/id/eprint/31923

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