The Impact of Exchange Rate Volatility on U.S. Foreign Direct Investment in Latin America PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download The Impact of Exchange Rate Volatility on U.S. Foreign Direct Investment in Latin America PDF full book. Access full book title The Impact of Exchange Rate Volatility on U.S. Foreign Direct Investment in Latin America by Callye R. M. Masten. Download full books in PDF and EPUB format.
Author: Callye R. M. Masten
Publisher: ProQuest
ISBN: 9780549388029
Category : Foreign exchange rates
Languages : en
Pages :
Get Book
Book Description
The determinants of foreign direct investment (FDI) have been widely examined. Previous studies have shown that exchange rates play a vital role in the analysis and are a major determinant in the flow of FDI. Most research has focused on examining how exchange rate volatility affects the economies of developed nations. However, little research has been done in understanding the impact of exchange rate volatility on FDI flows to Latin America. Developing countries lack the capital that is needed for further growth. Therefore, FDI is important to developing countries, because it allows them to gain the necessary capital. This paper examines the relationship between exchange rate volatility, political institutions and FDI flows into Latin America across two sectors: food processing, and industrial manufacturing. Empirical results show that exchange rate volatility significantly deters the flow of U.S. FDI into Latin America. Other significant economic factors are U.S. interest rates and openness to trade. Conflict and corruption are the political risk factors that have significant impacts on FDI flows. Conclusions from the paper recommend governments in Latin America to implement macroeconomic polices that promote stability, which could help reduce exchange rate volatility and lower inflation.
Author: Callye R. M. Masten
Publisher: ProQuest
ISBN: 9780549388029
Category : Foreign exchange rates
Languages : en
Pages :
Get Book
Book Description
The determinants of foreign direct investment (FDI) have been widely examined. Previous studies have shown that exchange rates play a vital role in the analysis and are a major determinant in the flow of FDI. Most research has focused on examining how exchange rate volatility affects the economies of developed nations. However, little research has been done in understanding the impact of exchange rate volatility on FDI flows to Latin America. Developing countries lack the capital that is needed for further growth. Therefore, FDI is important to developing countries, because it allows them to gain the necessary capital. This paper examines the relationship between exchange rate volatility, political institutions and FDI flows into Latin America across two sectors: food processing, and industrial manufacturing. Empirical results show that exchange rate volatility significantly deters the flow of U.S. FDI into Latin America. Other significant economic factors are U.S. interest rates and openness to trade. Conflict and corruption are the political risk factors that have significant impacts on FDI flows. Conclusions from the paper recommend governments in Latin America to implement macroeconomic polices that promote stability, which could help reduce exchange rate volatility and lower inflation.
Author: Graciela Moguillansky
Publisher:
ISBN:
Category : Capital movements
Languages : en
Pages : 30
Get Book
Book Description
Author: Werner Baer
Publisher: Routledge
ISBN: 1135790353
Category : Business & Economics
Languages : en
Pages : 238
Get Book
Book Description
Examine the changing nature of foreign investments in Latin America! Generously enhanced with easy-to-understand charts, tables, and graphs, this book covers the ins and outs of foreign direct investment in the established and emerging markets of Latin America. In addition to an overview of direct investment for the entire Latin American region in the 1990s, this valuable book examines specific countries’ experiences with FDI in that decade. These include Argentina, Chile, Mexico, Brazil, Peru, Ecuador, Paraguay, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Spending on environmental projects is on the rise, and Latin American nations are at the forefront of this financial whirlwind in the developing world. Foreign Direct Investment in Latin America: Its Changing Nature at the Turn of the Century examines the difficulties of assessing environmental investments. It analyzes the role of international capital in Latin-American environmental issues and discusses the major players, such as the World Bank, in international capital and the environment. Foreign Direct Investment in Latin America presents case studies that illustrate: the history of FDI in Argentina and the impact of the privatization of state-owned enterprises in 1991-1993 the similarities and differences between 1990s FDI in Mexico and Chile the ways that modern investment in Brazil differs in purpose from investment there in previous economic eras how Peru addressed its balance-of-payments crisis in a time when its domestic financial markets were thin and there existed few sources of financing besides banks how Paraguay’s historical lack of infrastructure has hampered FDI efforts there Ecuador’s financial and balance-of-payments crisis-its currency is in free-fall and its financial institutions are on the brink of collapse . . . and much more! Foreign Direct Investment in Latin America packs all this valuable information into a single user-friendly source. As we move into the new millennium, no student, educator, or investor interested in this quickly evolving, volatile market should be without it!
Author: Ricardo Hausmann
Publisher: IDB
ISBN: 1886938040
Category : Capital market
Languages : en
Pages : 114
Get Book
Book Description
Author: Inter-American Development Bank
Publisher: OECD Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 184
Get Book
Book Description
Proceedings of the 11th International Forum on latin American Perspectives, which discussed the desirability of foreign direct investment over other flows, such as bank lending.
Author: Centre on Transnational Corporations (United Nations)
Publisher: New York : United Nations
ISBN:
Category : Business & Economics
Languages : en
Pages : 44
Get Book
Book Description
Author: Dorte Verner
Publisher: World Bank Publications
ISBN: 9780821346204
Category : Political Science
Languages : en
Pages : 44
Get Book
Book Description
"Trade between the European Union (EU) and developing countries is importantaround 22 percent of the EU's exports go to developing countries, while 20 percent of the EU's imports originate in those countries. More specifically, trade between Latin America and the EU has ballooned in recent times..."What are the risks and opportunities facing the Latin American and Caribbean (LAC) region from the introduction of the euro? Will the replacement of the European currency basket by the euro have real economic effects, or will it be little more than an accounting phenomenon? This slim volume attempts to answer those questions. In doing so it covers the current economic situation, presents financial flow, discusses the value and volatility of the euro, and the financial implications of the euro, including the banking system and foreign debt and reserve management. Overall, the report gives a broad picture of the possible impact of the euro on the LAC region.
Author: Manuel Agosin
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 200
Get Book
Book Description
Foreign direct investment has quadrupled over the past decade in Latin America, which today is one of the world's major investment magnets. Yet the question of which foreign investment policies maximize these inflows remains unanswered. Even though the shift to market-oriented economies has liberalized investment policies throughout Latin America, FDI remains concentrated in only a few countries. Foreign Direct Investment in Latin America evaluates the volume of these new FDI inflows, the factors that attracted them, and their contribution to Latin American development. The book analyzes investment decisions in part through a comprehensive survey of businesses that have recently invested in the region. Case studies of FDI flows to Argentina, Chile and Colombia examine the role of foreign investment liberalization, incentives and performance requirements, complementary policies in such areas as macroeconomics, taxation, foreign exchange and trade, and foreign debt conversion programs.
Author: Daniel Lederman
Publisher: Stanford University Press
ISBN: 9780804752404
Category : Business & Economics
Languages : en
Pages : 438
Get Book
Book Description
Analyzing the experience of Mexico under the North American Free Trade Agreement (NAFTA), the authors draw lessons for other countries considering free trade agreements with the United States. The authors conclude that NAFTA raised external trade and foreign investment inflows and had a modest effect on Mexico’s average income per person. It is likely that NAFTA also helped achieve a modest reduction in poverty and an improvement in job quality. However, major obstacles remain to Mexico’s long term development—NAFTA is not enough. The main lesson for other countries is that free trade agreements offer opportunities to accelerate economic growth, but do not guarantee it.
Author: Gerardo Esquivel
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 40
Get Book
Book Description
Concerns the impact of instability of the dollar, yen and deutsche mark on developing countries' exports, foreign direct investment, and exchange rate crises.
