Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Exchange rate regimes and FDI flows to developing countries
AU - Abbott, Andrew James
AU - De Vita, Glauco
AU - Cushman, David
PY - 2012/2/28
Y1 - 2012/2/28
N2 - Drawing on recent advances in exchange rate regime classifications, the paper examines empirically the effect of exchange rate regimes on foreign direct investment (FDI) flows to developing countries. Using system generalized methods of moments estimation on a panel of 70 developing countries for the period 1985–2004, we find that developing countries adopting de facto fixed or intermediate regimes significantly outperform those opting for a flexible exchange rate system in attracting FDI flows. No statistically significant differences in the FDI‐inducing properties of fixes, intermediates and floats are found using the International Monetary Fund official classification.
AB - Drawing on recent advances in exchange rate regime classifications, the paper examines empirically the effect of exchange rate regimes on foreign direct investment (FDI) flows to developing countries. Using system generalized methods of moments estimation on a panel of 70 developing countries for the period 1985–2004, we find that developing countries adopting de facto fixed or intermediate regimes significantly outperform those opting for a flexible exchange rate system in attracting FDI flows. No statistically significant differences in the FDI‐inducing properties of fixes, intermediates and floats are found using the International Monetary Fund official classification.
U2 - 10.1111/j.1467-9396.2011.01010.x
DO - 10.1111/j.1467-9396.2011.01010.x
M3 - Journal article
VL - 20
SP - 95
EP - 107
JO - Review of International Economics
JF - Review of International Economics
SN - 0965-7576
IS - 1
ER -