The cyclical nature of FDI flows
In this paper, we examine how the business and interest rate cycles in developed countries affects FDI to developing countries. After aggregating flows into three big source areas (the U.S., Europe and Japan), we find FDI flows to be countercyclical with respect to both output and interest rate cycl...
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Formato: | Documento de trabajo acceptedVersion |
Lenguaje: | Inglés |
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Universidad Torcuato Di Tella. Escuela de Negocios. Centro de Investigaciones en Finanzas (CIF)
2018
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Materias: | |
Acceso en línea: | http://repositorio.utdt.edu/handle/utdt/10761 |
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I57-R16320.500.13098-10761 |
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dspace |
institution |
Universidad Torcuato Di Tella |
institution_str |
I-57 |
repository_str |
R-163 |
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Repositorio Digital Universidad Torcuato Di Tella |
language |
Inglés |
orig_language_str_mv |
eng |
topic |
Inversiones extranjeras Análisis financiero Análisis comparativo Relaciones económicas internacionales |
spellingShingle |
Inversiones extranjeras Análisis financiero Análisis comparativo Relaciones económicas internacionales Levy Yeyati, Eduardo Panizza, Ugo Stein, Ernesto The cyclical nature of FDI flows |
description |
In this paper, we examine how the business and interest rate cycles in developed countries affects FDI to developing countries. After aggregating flows into three big source areas (the U.S., Europe and Japan), we find FDI flows to be countercyclical with respect to both output and interest rate cycles in the first two, whereas in Japan they display either no cyclical behavior or mild procyclical behavior. This finding is consistent with the fact that FDI outflows and local investment tend to move in opposite directions during the cycles in the U.S. and Europe, reflecting investors’ arbitrage among different investment opportunities. In sum, and contrary to what is usually claimed, we conclude that recessions in industrial countries are likely to increase FDI flows, particularly to those countries with close ties with the U.S. and Europe. |
format |
Documento de trabajo acceptedVersion |
author |
Levy Yeyati, Eduardo Panizza, Ugo Stein, Ernesto |
author_facet |
Levy Yeyati, Eduardo Panizza, Ugo Stein, Ernesto |
author_sort |
Levy Yeyati, Eduardo |
title |
The cyclical nature of FDI flows |
title_short |
The cyclical nature of FDI flows |
title_full |
The cyclical nature of FDI flows |
title_fullStr |
The cyclical nature of FDI flows |
title_full_unstemmed |
The cyclical nature of FDI flows |
title_sort |
cyclical nature of fdi flows |
publisher |
Universidad Torcuato Di Tella. Escuela de Negocios. Centro de Investigaciones en Finanzas (CIF) |
publishDate |
2018 |
url |
http://repositorio.utdt.edu/handle/utdt/10761 |
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AT levyyeyatieduardo thecyclicalnatureoffdiflows AT panizzaugo thecyclicalnatureoffdiflows AT steinernesto thecyclicalnatureoffdiflows AT levyyeyatieduardo cyclicalnatureoffdiflows AT panizzaugo cyclicalnatureoffdiflows AT steinernesto cyclicalnatureoffdiflows |
bdutipo_str |
Repositorios |
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1764820543043796992 |