ENTRY BY FOREIGN FIRMS IN THE UNITED-STATES UNDER EXCHANGE-RATE UNCERTAINTY

• 成果类型: Article
• 署名作者: CAMPA, JM
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.2307/2110014
• 发表日期: 1993-11
• 页码: 614-622
• 关键词: rate pass-through; direct-investment; TRADE; hysteresis

摘要

This paper tests the effects that real exchange rate fluctuations had on foreign direct investment into the United States during the 1980s. Using a sample of foreign investments in 61 four-digit SIC U.S. wholesale industries, this paper finds exchange rate volatility to be negatively correlated with the number of foreign investments that occur in these industries. This negative effect is most pronounced for industries where sunk investments in physical and intangible assets are relatively high. Although exchange rate volatility deters investment from all countries, its effect was most significant for investments by Japanese companies.