The Impact of Exchange Rate Volatility on Foreign Direct Investment in Iran

Abstract

The flows of foreign investment are the fundamental elements in the economical evolution of countries within the globalization process of economy. Previous research on exchange rate shows its significance as a key role in trades and flows of FDI. Although exchange rate and FDI are empirically investigated but the relationship between the volatility of exchange rate and flows of international investments is generally not identified. Therefore, considering the importance of the subject discussed, it is needed to consider the determinants of FDI specially the volatility of exchange rate and provide better situations for attracting FDI in Iran.

The main goal of this study is evaluating the determinants of inward FDI particularly volatility of exchange rate in Iran by using the Johansen and Juselius's cointegration system approach model covering the period 1980Q2-2006Q3. The findings of this study reveal that gross domestic product, openness and exchange rate to have positive relationship with foreign direct investment but, world crude oil prices and volatility of exchange rate have negative relationship with foreign direct investment. The empirical results obtained in this paper recommend the economy Politicians in Iran to implement exchange rate policies that promote stability of exchange rate, which could help reduce exchange rate volatility in order to attract more FDI.

Pre and Post Crisis Analysis of Stock Price and Exchange Rate: Evidence from Malaysia

Pre and Post Crisis Analysis of Stock Price and Exchange Rate: Evidence from Malaysia

Author  : Baharom, A. H., & Habibullah, M. S

Source  : International Applied Economics and Management Letters, 1(1), p.33-36.

Publication Date: 2008

Abstract：

The furore and chaos created by the Asian financial crisis have ignited many studies on numerous subjects, and it is believed that the crisis has changed the way nations being administered and policies formed and implemented especially those regarding monetary and fiscal policies. In this study Johansen (1991) cointegration method was used and the period was divided into two sub periods, albeit pre crisis and post crisis. The results obtained are similar with a number of past literatures pointing to no long run relationship between stock price and exchange rate for both periods.

Keywords：

Stock price, exchange rate, Asian financial crisis, Cointegration.

Baharom, A. H., & Habibullah, M. S, “Pre and post crisis analysis of stock price and exchange rate: Evidence from Malaysia” , 2008 , International Applied Economics and Management Letters, vol.1 , p.33-36.

Exchange rates, exports and economic growth in Turkey: Evidence from Johansen cointegration tests

作者:

KOÇÇAT, Halil

資料來源:

International Journal of Economic Perspectives. 2008, Vol. 2 Issue 1, p5-11. 7p. 2 Charts.

文件類型:

Article

主題術語:

*FOREIGN exchange rates
*EXPORTS
*ECONOMIC development
*COINTEGRATION
*ECONOMETRICS
*GROSS domestic product

地理詞彙:

TURKEY

作者提供的關鍵字:

Cointegration
Exports
GDP
Real Exchange Rate
Turkey

摘要:

The relationship between economics growth, foreign trade and exchange rate movements is inconclusive in the relevant literature. Most of the results from empirical studies show different conclusions depending on the country, data and model to be selected. Turkey is a developing country, which is strongly depending on foreign trade with others. Turkey experienced trade deficits and high exchange rate fluctuations in the economy more than 50 years. In this study, the relationship between economic growth, exchange rate movements and Turkey's exports empirically was evaluated by using time series quarterly data. The basic finding of this study is that no long-run equilibrium relationship has been found between real income per capita, real exchange rates and real exports of goods and services in Turkey based on the Johansen methodology. [ABSTRACT FROM AUTHOR]

 

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作者所屬機構:

Turkish Bank Ltd., Central Office, Nicosia Northern Cyprus, Via Mersin 10, Turkey

ISSN:

1307-1637

入藏號碼:

35639179

資料庫:

Business Source Complete