Logo image
Which exchange rates matter for FDI? Evidence for Japan
Journal article   Open access   Peer reviewed

Which exchange rates matter for FDI? Evidence for Japan

Benjamin N. Dennis, Christopher A. Laincz and Lei Zhu
Southern economic journal, v 75(1), pp 50-68
01 Jul 2008
url
https://doi.org/10.2307/20112027View
Published, Version of Record (VoR) Open CC BY V4.0

Abstract

Business & Economics Economics Social Sciences
Using industry level data for Japanese foreign direct investment (FDI) flows to five Asian countries, we investigate how the sensitivity of FDI to the exchange rate changes across different industry types and exchange rate indices. Key results are as follows: (i) aggregated FDI data reported at the national level are insufficient for analysis, and industry-level data are required; (ii) pooling industries by export orientation reveals heterogeneity in the response of different types of FDI to the exchange rates; and (iii) alternative exchange rate measures, particularly the competitor-weighted exchange rate, perform better for export-oriented FDI. We use our results to address key conflicts in the literature on exchange rates and FDI.

Metrics

Details

UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#9 Industry, Innovation and Infrastructure
#17 Partnerships for the Goals

Source: SDGs in the Output

InCites Highlights

Data related to this publication, from InCites Benchmarking & Analytics tool:

Collaboration types
Domestic collaboration
Web of Science research areas
Economics
Logo image