The Impact of Misalignment on FDI in the Developing Countries

Volume: 4 Number: 4 December 1, 2014
  • Abdessalem Gouidar
  • Ridha Nouira
EN

The Impact of Misalignment on FDI in the Developing Countries

Abstract

This paper contributes to a current and intense debate among economists concerning the impact that real exchange rate misalignment can have on FDI. To identify the degree of misalignment, a model of Edwards in Panel will be estimated for a sample of 52 developing countries over the period 1980-2010. Once the misalignment values ​​are determined, they will be included in the FDI model. The results prove that the misalignment is a main determinant of the FDI in the developing countries. Indeed, the overvaluation has a negative and significant effect on the FDI while undervaluation does not have a significant effect on it. Finally, a persistent overvaluation in developing countries can slow down the flow of FDI to these countries, whereas the persistent undervaluation stimulates these flows.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Abdessalem Gouidar This is me

Ridha Nouira This is me

Publication Date

December 1, 2014

Submission Date

December 1, 2014

Acceptance Date

-

Published in Issue

Year 2014 Volume: 4 Number: 4

APA
Gouidar, A., & Nouira, R. (2014). The Impact of Misalignment on FDI in the Developing Countries. International Journal of Economics and Financial Issues, 4(4), 784-800. https://izlik.org/JA58HW46NJ
AMA
1.Gouidar A, Nouira R. The Impact of Misalignment on FDI in the Developing Countries. IJEFI. 2014;4(4):784-800. https://izlik.org/JA58HW46NJ
Chicago
Gouidar, Abdessalem, and Ridha Nouira. 2014. “The Impact of Misalignment on FDI in the Developing Countries”. International Journal of Economics and Financial Issues 4 (4): 784-800. https://izlik.org/JA58HW46NJ.
EndNote
Gouidar A, Nouira R (December 1, 2014) The Impact of Misalignment on FDI in the Developing Countries. International Journal of Economics and Financial Issues 4 4 784–800.
IEEE
[1]A. Gouidar and R. Nouira, “The Impact of Misalignment on FDI in the Developing Countries”, IJEFI, vol. 4, no. 4, pp. 784–800, Dec. 2014, [Online]. Available: https://izlik.org/JA58HW46NJ
ISNAD
Gouidar, Abdessalem - Nouira, Ridha. “The Impact of Misalignment on FDI in the Developing Countries”. International Journal of Economics and Financial Issues 4/4 (December 1, 2014): 784-800. https://izlik.org/JA58HW46NJ.
JAMA
1.Gouidar A, Nouira R. The Impact of Misalignment on FDI in the Developing Countries. IJEFI. 2014;4:784–800.
MLA
Gouidar, Abdessalem, and Ridha Nouira. “The Impact of Misalignment on FDI in the Developing Countries”. International Journal of Economics and Financial Issues, vol. 4, no. 4, Dec. 2014, pp. 784-00, https://izlik.org/JA58HW46NJ.
Vancouver
1.Abdessalem Gouidar, Ridha Nouira. The Impact of Misalignment on FDI in the Developing Countries. IJEFI [Internet]. 2014 Dec. 1;4(4):784-800. Available from: https://izlik.org/JA58HW46NJ