Exchange Rate Movement and Foreign Direct Investment in Asean Economies
Joint Authors
Thien Sang, Lim
Mulok, Dullah
Asid, Rozilee
Kogid, Mori
Lily, Jaratin
Source
Economics Research International
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-03-30
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
The inflows of foreign direct investment (FDI) are important for a country's economic development, but the world market for FDI has become more competitive.
This paper empirically analyses the exchange rate movements and foreign direct investment (FDI) relationship using annual data on ASEAN economies, that is, Malaysia, the Philippines, Thailand, and Singapore.
By employing ARDL bounds test approach, the empirical results show the existence of significant long-run cointegration between exchange rate and FDI for the case of Singapore, Malaysia, and the Philippines with all countries recording negative coefficient implying that the appreciation of Singapore dollar, Malaysian ringgit, and the Philippine peso has a positive impact on FDI inflows.
Using the ECM based ARDL approach for causality test, both Singapore and the Philippines show long-run bidirectional causality between exchange rate and FDI whereas long-run unidirectional causality running from the exchange rate to FDI in Malaysia.
Furthermore, this study also found that short-run unidirectional causality running from the exchange rate to FDI exists in Singapore.
American Psychological Association (APA)
Lily, Jaratin& Kogid, Mori& Mulok, Dullah& Thien Sang, Lim& Asid, Rozilee. 2014. Exchange Rate Movement and Foreign Direct Investment in Asean Economies. Economics Research International،Vol. 2014, no. 2014, pp.1-10.
https://search.emarefa.net/detail/BIM-463317
Modern Language Association (MLA)
Lily, Jaratin…[et al.]. Exchange Rate Movement and Foreign Direct Investment in Asean Economies. Economics Research International No. 2014 (2014), pp.1-10.
https://search.emarefa.net/detail/BIM-463317
American Medical Association (AMA)
Lily, Jaratin& Kogid, Mori& Mulok, Dullah& Thien Sang, Lim& Asid, Rozilee. Exchange Rate Movement and Foreign Direct Investment in Asean Economies. Economics Research International. 2014. Vol. 2014, no. 2014, pp.1-10.
https://search.emarefa.net/detail/BIM-463317
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-463317