Do exchange rates have any impact upon UK inward foreign direct investment?

De Vita, Glauco and Abbott, Andrew James (2007) Do exchange rates have any impact upon UK inward foreign direct investment? Applied Economics, 39 (2). pp. 2553-2564. ISSN 0003-6846

Full text not available from this repository.

Abstract

This article examines the impact of the level and volatility of the real exchange rate on UK foreign direct investment (FDI) inflows from the seven major countries of origin of the investment over the period 1975–2001. We use both fixed effects and dynamic generalized methods of moments (GMM) panel estimation techniques, and manufacturing data disaggregated by high and low R&D content of the sector of destination. Our results provide strong evidence that exchange rate volatility has a negative impact on FDI flows into the UK, irrespective of the sector of destination of the investment. On the other hand, the level of the real exchange rate is found to have a statistically insignificant effect on FDI after controlling for endogeneity of the regressors.

Item Type:
Journal Article
Journal or Publication Title:
Applied Economics
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/aacsb/disciplinebasedresearch
Subjects:
Departments:
ID Code:
141352
Deposited By:
Deposited On:
12 Feb 2020 12:40
Refereed?:
Yes
Published?:
Published
Last Modified:
09 Sep 2020 06:44