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Exchange rates and foreign direct investment: theoretical models and empirical evidence *
Author(s) -
Phillips Shauna,
AhmadiEsfahani Fredoun Z.
Publication year - 2008
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/j.1467-8489.2008.00431.x
Subject(s) - foreign direct investment , economics , empirical research , empirical evidence , work (physics) , international economics , macroeconomics , mathematics , engineering , epistemology , mechanical engineering , philosophy , statistics
Over the past decades, growth in foreign direct investment (FDI) has stimulated significant attempts at developing theories that explain this trend. One line of this research explores the relationship between exchange rates and FDI. There is no consensus about the nature of this relationship in either the theoretical or empirical work. In this article, we critically appraise this body of work, and find the theoretical studies to be making ground in exploring the complexities of FDI, but the empirical evidence to be constrained by data problems.