Abstract

This paper examines the direct and spillover effects of exchange rate on foreign direct investment (FDI) inflows in a panel of ASEAN countries from 2001 to 2018. We utilize the spatial econometric approach to accommodate the nature of spatial dependence among ASEAN countries. Our results suggest that the effect of the exchange rate depends on the source-region of FDI, implying the existence of spatial heterogeneity in ASEAN’s FDI. We also show that FDI inflows in ASEAN are not only influenced by the exchange rate of the country itself but also by those of the neighboring countries.

Details

Title
The dynamics of foreign direct investment and exchange rates: An interconnection approach in ASEAN
Author
Ferry Syarifuddin 1   VIAFID ORCID Logo 

1  Bank Indonesia, Bank Indonesia Institute, Jakarta, Indonesia 
Publication year
2022
Publication date
Jan 2022
Publisher
Taylor & Francis Ltd.
e-ISSN
23322039
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.1080/23322039.2022.2058156
ProQuest document ID
2770810018
Copyright
© 2022 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. This work is licensed under the Creative Commons Attribution License http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.