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Exchange Rate Volatility And FDI


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INTRODUCTION

Foreign Direct Investment brings various benefits to both investing countries, or home countries, and recipient countries, or host countries. FDI transfers not only financial resources, but also technology and managerial know-how from home countries to host countries. Therefore, FDI are very important for developing countries, or emerging markets, to grow such as G.C.C countries and some Asian countries. For this reason, I tried to study the relationship between FDI and exchange rate volatility and observe how exchange rate changeability could affect the FDI positively or negatively. In this paper, I have chosen five academic papers which are related to FDI and currency exchange rate variability and I tried to present them in the following: (1) Exchange Rate, Exchange Rate Volatility and Foreign Direct Investment, (2) Untying the Gordian knot: The Multiple Links Between Exchange Rates and Foreign Direct Investment, (3) Exchange Rate Volatility and Foreign Direct......

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Approximate Word Count: 3471
Approximate Pages: 14 (260 words per double-spaced page)

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