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Exchange Rate Volatility and FDI Inflows: Evidence from Cross-Country Panel Data

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dc.contributor.authorNguyen, Ha
dc.contributor.authorAlgu, Yashvir
dc.contributor.authorHanusch, Marek
dc.date.accessioned2018-06-19T20:10:52Z
dc.date.available2018-06-19T20:10:52Z
dc.date.issued2018-06
dc.description.abstractUsing a panel of 80 developing and developed countries for the period 1990-2015, this studyanalyses the relationship between exchange rate volatility and foreign direct investment (FDI)inflows. The results reveal a negative relationship between de facto exchange rate volatility andFDI. Reducing exchange rate volatility by 10 percent over one-year can boost FDI inflows—ceterisparibus—by an estimated 0.48 percentage points of GDP while the same reduction over the pastfive years can boost FDI inflows by 0.27 percentage points over the long-run. The results areapplied to the case of South Africa, which has been experiencing high volatility of the rand inrecent years. Reducing the rand's volatility to that of developing country peers, South Africa could boost FDI inflows by a potential of 0.25 percentage points of GDP.en
dc.identifierhttp://documents.worldbank.org/curated/en/534841528724321585/Exchange-rate-volatility-and-FDI-inflows-evidence-from-cross-country-panel-data
dc.identifier.doi10.1596/29911
dc.identifier.urihttps://hdl.handle.net/10986/29911
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesMTI Global Practice Discussion Paper;No. 2
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectEXCHANGE RATES
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFDI
dc.subjectCAPITAL FLOWS
dc.subjectCURRENCY VOLATILITY
dc.titleExchange Rate Volatility and FDI Inflowsen
dc.title.subtitleEvidence from Cross-Country Panel Dataen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleExchange Rate Volatility and FDI Inflows
okr.date.disclosure2018-06-11
okr.date.doiregistration2025-04-07T08:47:48.791025Z
okr.date.doiregistration2025-04-08T16:24:08.470539Z
okr.date.doiregistration2025-04-09T02:57:24.658063Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/534841528724321585/Exchange-rate-volatility-and-FDI-inflows-evidence-from-cross-country-panel-data
okr.guid534841528724321585
okr.identifier.doi10.1596/29911
okr.identifier.externaldocumentum090224b085bb05cc_1_0
okr.identifier.internaldocumentum29975956
okr.identifier.report127042
okr.importedtrueen
okr.language.supporteden
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicInternational Economics and Trade::Foreign Direct Investment
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.unitGMT - Operational Services (GMTOS)
relation.isAuthorOfPublicationc1c4d7c1-b16a-5f9a-a0ac-f855e347728a
relation.isAuthorOfPublicatione8191634-f6b7-4f49-928b-f42b51d2c37f
relation.isAuthorOfPublication.latestForDiscoveryc1c4d7c1-b16a-5f9a-a0ac-f855e347728a
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