Exchange rate volatility and Foreign Direct Investment in South Asia
by Kamal P. Upadhyaya; Rabindra Bhandari; Robert Rainish
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 4, No. 4, 2011

Abstract: This paper examines the effect of Real Exchange Rate Volatility (RERVOL) on the Foreign Direct Investment (FDI) inflow in Bangladesh, India, Pakistan and Sri Lanka. A model that includes exchange rate volatility with other determinants of FDI is developed. Annual time series data from 1976–2009 is used for India, Pakistan and Sri Lanka. In case of Bangladesh because of the data limitation only data series from 1986–2009 is used. A panel data from these four countries for a period of 1986–2009 is also constructed. Before estimating the model the time series properties of the data are diagnosed and an error correction model is developed. The estimated results show an inconclusive relationship between the exchange rate volatility and the FDI.

Online publication date: Sun, 11-Jan-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economic Policy in Emerging Economies (IJEPEE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com