Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4
This study investigates the asymmetric effect of exchange rate risk (volatility) on the real foreign direct investment (FDI) inflows in Malaysia, the Philippines, Singapore, and Thailand (ASEAN-4) using the Nonlinear Autoregressive Distributed Lag (NARDL) model. The results revealed the occurrence o...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | en en |
| Published: |
2020
|
| Subjects: | |
| Online Access: | https://eprints.ums.edu.my/id/eprint/26331/1/Asymmetric%20effect%20of%20real%20exchange%20rate%20risk%20on%20foreign%20direct%20investment.pdf https://eprints.ums.edu.my/id/eprint/26331/2/Asymmetric%20effect%20of%20real%20exchange%20rate%20risk%20on%20foreign%20direct%20investment1.pdf https://eprints.ums.edu.my/id/eprint/26331/ https://doi.org/ 10.30585/jrems.v2i3.512 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1831793888985088000 |
|---|---|
| author | Jaratin Lily Mori Kogid Dullah Mulok Rozilee Asid |
| author_facet | Jaratin Lily Mori Kogid Dullah Mulok Rozilee Asid |
| author_sort | Jaratin Lily |
| building | UMS Library |
| collection | Institutional Repository |
| content_provider | Universiti Malaysia Sabah |
| content_source | UMS Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | This study investigates the asymmetric effect of exchange rate risk (volatility) on the real foreign direct investment (FDI) inflows in Malaysia, the Philippines, Singapore, and Thailand (ASEAN-4) using the Nonlinear Autoregressive Distributed Lag (NARDL) model. The results revealed the occurrence of a long-run asymmetric cointegration between real FDI inflows and real exchange rate risk in the Philippines, Singapore, and Thailand, but not in Malaysia. For the Philippines and Singapore, there is evidence of long-run asymmetry whereas short-run asymmetry exists for the case of Thailand. These findings imply that the asymmetric effects prove to be useful in providing essential information to the related parties on how FDI inflows react to exchange rate risks differently. Therefore, policymakers in ASEAN countries should be concerned about the asymmetric effect of the exchange rate volatility to mitigate the stylized effects of exchange rate movements on FDI inflows. |
| format | Article |
| id | my.ums.eprints-26331 |
| institution | Universiti Malaysia Sabah |
| language | en en |
| publishDate | 2020 |
| record_format | eprints |
| spelling | my.ums.eprints-263312021-04-05T02:57:56Z https://eprints.ums.edu.my/id/eprint/26331/ Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4 Jaratin Lily Mori Kogid Dullah Mulok Rozilee Asid HB Economic theory. Demography This study investigates the asymmetric effect of exchange rate risk (volatility) on the real foreign direct investment (FDI) inflows in Malaysia, the Philippines, Singapore, and Thailand (ASEAN-4) using the Nonlinear Autoregressive Distributed Lag (NARDL) model. The results revealed the occurrence of a long-run asymmetric cointegration between real FDI inflows and real exchange rate risk in the Philippines, Singapore, and Thailand, but not in Malaysia. For the Philippines and Singapore, there is evidence of long-run asymmetry whereas short-run asymmetry exists for the case of Thailand. These findings imply that the asymmetric effects prove to be useful in providing essential information to the related parties on how FDI inflows react to exchange rate risks differently. Therefore, policymakers in ASEAN countries should be concerned about the asymmetric effect of the exchange rate volatility to mitigate the stylized effects of exchange rate movements on FDI inflows. 2020 Article PeerReviewed text en https://eprints.ums.edu.my/id/eprint/26331/1/Asymmetric%20effect%20of%20real%20exchange%20rate%20risk%20on%20foreign%20direct%20investment.pdf text en https://eprints.ums.edu.my/id/eprint/26331/2/Asymmetric%20effect%20of%20real%20exchange%20rate%20risk%20on%20foreign%20direct%20investment1.pdf Jaratin Lily and Mori Kogid and Dullah Mulok and Rozilee Asid (2020) Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4. Journal of Research in Emerging Markets, 2 (3). pp. 91-105. ISSN 2663-905X https://doi.org/ 10.30585/jrems.v2i3.512 |
| spellingShingle | HB Economic theory. Demography Jaratin Lily Mori Kogid Dullah Mulok Rozilee Asid Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4 |
| title | Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4 |
| title_full | Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4 |
| title_fullStr | Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4 |
| title_full_unstemmed | Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4 |
| title_short | Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4 |
| title_sort | asymmetric effect of real exchange rate risk on foreign direct investment: empirical evidence in asean-4 |
| topic | HB Economic theory. Demography |
| url | https://eprints.ums.edu.my/id/eprint/26331/1/Asymmetric%20effect%20of%20real%20exchange%20rate%20risk%20on%20foreign%20direct%20investment.pdf https://eprints.ums.edu.my/id/eprint/26331/2/Asymmetric%20effect%20of%20real%20exchange%20rate%20risk%20on%20foreign%20direct%20investment1.pdf https://eprints.ums.edu.my/id/eprint/26331/ https://doi.org/ 10.30585/jrems.v2i3.512 |
| url_provider | http://eprints.ums.edu.my/ |