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Real exchange rate uncertainty and private investment in developing countries

The author examines empirically the link between real exchange rate uncertainty and private investment in developing countries using a large cross country-time series data set. He builds a GARCH-based measure of real exchange rate volatility and finds that it has a strong negative impact on investment, after controlling for other standard investment determinants and taking into account their potential endogeneity.

Link http://www-wds.worldbank.…64258546&theSitePK=523679
Author Serven, L.
Date 30-Apr-2002
Institute World Bank
Tags exchange, rate, private, investment, developing

See also

  1. Impact of Foreign Exchange Policy on Investment Activity in the Economy of the Republic of Uzbekistan
  2. Spotlight on south-eastern Europe
  3. What should the multilateral development banks do?
  4. Financial structures to promote private sector development in south-eastern Europe
  5. Foreign bank participation and crises in developing countries

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