IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v17y2008i3p411-438.html
   My bibliography  Save this article

Exchange rates and US direct investment into Latin America

Author

Listed:
  • Isabel Ruiz
  • Susan Pozo

Abstract

This paper analyzes the impact of exchange rate levels and exchange rate uncertainty on US foreign direct investment into Latin America. By decomposing exchange rate uncertainty into temporary (short-run) and permanent (long-run) components, we further explore whether the nature of uncertainty matters. Our empirical findings support the view that exchange rate uncertainty has a negative impact on US investment flows into Latin America. Moreover, it is the persistency in uncertainty rather than transitory uncertainty that mostly deters foreign investment. In contrast, investors do not appear to be affected by discrete movements in exchange rate levels.

Suggested Citation

  • Isabel Ruiz & Susan Pozo, 2008. "Exchange rates and US direct investment into Latin America," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 17(3), pages 411-438.
  • Handle: RePEc:taf:jitecd:v:17:y:2008:i:3:p:411-438
    DOI: 10.1080/09638190802137083
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190802137083
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Engle, Robert F. & White (the late), Halbert (ed.), 1999. "Cointegration, Causality, and Forecasting: Festschrift in Honour of Clive W. J. Granger," OUP Catalogue, Oxford University Press, number 9780198296836.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:rss:jnljef:v4i6p1 is not listed on IDEAS
    2. Maroula Khraiche & Jeffrey Gaudette, 2013. "FDI, Exchange Rate Volatility and Financial Development: Regional Differences In Emerging Economies," Economics Bulletin, AccessEcon, vol. 33(4), pages 3143-3156.
    3. Diego Escobari & Diego E. Vacaflores, 2015. "Expectations and the Dynamic Feedback between Foreign Direct Investment and Economic Growth," International Economic Journal, Taylor & Francis Journals, vol. 29(1), pages 121-136, March.
    4. Blanco, Luisa R., 2012. "The Spatial Interdependence of FDI in Latin America," World Development, Elsevier, vol. 40(7), pages 1337-1351.
    5. repec:spr:portec:v:16:y:2017:i:3:d:10.1007_s10258-017-0136-y is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:17:y:2008:i:3:p:411-438. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.