Show simple item record

dc.contributor.authorLee, Bong-Sooen_US
dc.contributor.authorMin, Byung-Seongen_US
dc.contributor.editorC.Cao, J-K Kang, S.G. Rheeen_US
dc.date.accessioned2017-04-24T08:34:31Z
dc.date.available2017-04-24T08:34:31Z
dc.date.issued2011en_US
dc.date.modified2012-06-26T22:41:49Z
dc.identifier.issn0927-538Xen_US
dc.identifier.doi10.1016/j.pacfin.2011.05.003en_US
dc.identifier.urihttp://hdl.handle.net/10072/42338
dc.description.abstractWe examine the role of both the volatility and levels of exchange rates in the determination of multinational enterprises' (MNEs) investments using a unique Korean dataset. These data provide a natural laboratory due to the Korean experience of a severe financial crisis in the late nineties. We find, first, that the behavior of foreign investors in Korea has changed following the 1997 crisis. The change in foreign direct investment (FDI) in response to exchange rate volatility is robust, while that to exchange rate level is quite mixed, which is consistent with recently developed real option-based FDI theory. Second, the effect of exchange rate volatility on FDI is persistent, whereas that of misalignment of level is only temporary, suggesting that MNEs regard volatility as a more generic determinant of foreign investment than misalignment of the exchange rate level. Third, we find strong evidence of nonlinearity between uncertainty and FDI, which may shed some light on why existing literature shows mixed results on the relation between exchange rate variables and FDI.en_US
dc.description.peerreviewedYesen_US
dc.description.publicationstatusYesen_US
dc.format.extent265017 bytes
dc.format.mimetypeapplication/pdf
dc.languageEnglishen_US
dc.language.isoen_US
dc.publisherElsevieren_US
dc.publisher.placeNetherlandsen_US
dc.relation.ispartofstudentpublicationNen_US
dc.relation.ispartofpagefrom586en_US
dc.relation.ispartofpageto603en_US
dc.relation.ispartofissue5en_US
dc.relation.ispartofjournalPacific-Basin Finance Journalen_US
dc.relation.ispartofvolume19en_US
dc.rights.retentionYen_US
dc.subject.fieldofresearchcode340203en_US
dc.titleExchange rates and FDI strategies of multinational enterprisesen_US
dc.typeJournal articleen_US
dc.type.descriptionC1 - Peer Reviewed (HERDC)en_US
dc.type.codeC - Journal Articlesen_US
gro.rights.copyrightCopyright 2011 Elsevier. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.en_US
gro.date.issued2011
gro.hasfulltextFull Text


Files in this item

This item appears in the following Collection(s)

  • Journal articles
    Contains articles published by Griffith authors in scholarly journals.

Show simple item record