Impact of Exchange Rate on Foreign Direct Investment in Pakistan

Bilawal, Muhammad; Ibrahim, Muhammad bin; Abbas, Amjad; Shuaib, Muhammad; Ahmed, Mansoor; Hussain, Ibrar; Fatima, Tehreem

doi:10.13189/aeb.2014.020602

Cited by 20 publications

(7 citation statements)

References 30 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In particular, study coefficients advocated that a 10% development in access to financial services will increase the present trend of FDI inflows in the economy by 0.96% in the long run and 0.347% in the short run. The existing literature supports our study findings, for instance, Bevan et al (2004), Toxopeus and Lensink (2008), Qamruzzaman and Wei (2019), and Zwedu (2014), but conflicts with the study findings of Morgan and Pontines (2014), Singh and Zammit (2000), and Morgan and Pontines (2018).…”

Section: Cs-ardl Estimationcontrasting

confidence: 81%

Do environmental quality, financial inclusion, and good governance ensure the FDI sustainably in Belt and Road countries? Evidence from an application of CS-ARDL and NARDL

Jinru

Qamruzzaman

Hangyu

et al. 2022

Front. Environ. Sci.

View full text Add to dashboard Cite

Domestic capital adequacy and sustainable economic growth are heavily reliant on technological advancement, managerial know-how, and money supply in the economy. In this context, FDI has emerged and is placed at an apex position due to its unprecedented impact on achieving sustainability across the world. The motivation of this study is to scale the effects of good governance, financial inclusion, and environmental quality on inflows of FDI in BRI nations for the period from 1990 to 2020. Several panel econometrical tools have been applied, for example, CDS, CADF, CIPS, CS-ARDL, and NARDL, to investigate the association and explanatory variables elasticity on inflows of FDI in BRI nations. CDS results revealed that research units share common dynamism and second-generation panel unit root test-documented variables are stationary after the first difference. The results of the panel co-integration with an error-correction term confirmed the empirical equation’s long-run association. According to the CS-ARDL assessment, positive and statistically significant impacts have been documented, from financial inclusion, good governance, and environmental quality to FDI inflows. Study findings suggest that governmental effectiveness, easy access to financial services and benefits, and a less-regulated environmental concern economy motivate capital transfer decisions. The asymmetric assessment documented a long-run asymmetric association between FI, GG, EQ, and FDI. Referring to asymmetric shock elasticity, the study disclosed a positive and statistically significant relation to FDI inflows, especially in the long run. The directional causality test documented bidirectional causality running between FI, EQ, GG, and FDI [FI←→FDI; GG←→FDI; and EQ←→FDI] in the short-run.

show abstract

Section: Cs-ardl Estimationcontrasting

confidence: 81%

Do environmental quality, financial inclusion, and good governance ensure the FDI sustainably in Belt and Road countries? Evidence from an application of CS-ARDL and NARDL

Jinru

Qamruzzaman

Hangyu

et al. 2022

Front. Environ. Sci.

View full text Add to dashboard Cite

show abstract

“…In regression analysis, the value of R-square = 0.679 indicates that the independent variable exchange has a 67% influence over the dependent component Foreign Direct Investment and that the research model is accurate. The findings from the correlation study revealed a substantial positive association between the momentum in monetary terms and foreign direct investment [55]. The contributors explore how the current system of momentum in monetary terms affects output and inflation in (South) Eastern and Central Europe.…”

Section: Exchange Rate Volatilitymentioning

confidence: 95%

Challenges faced by foreign companies in Turkey due to volatility of the local currency

Ali Almashaqbeh

2023

EJBESS

View full text Add to dashboard Cite

Even though the working climate in Turkey is widely considered positive, many foreign enterprises have found success there. Local currency fluctuation is one of the key difficulties that foreign enterprises have noticed. This project focuses on currency mercurial in the context of Turkish foreign firms. Secondary means of collecting data have been employed in this project. Information has been gathered from the articles. It has been observed that currently, it is critical for the sustainability of international companies as the Turkish Lira is continuously fluctuating, and this was considered the most terrible time for the economy to return to the previous spirit. Certain factors have affected the Turkish economy, and this instability has brought challenges not only for the international company’s survival but also for the domestic companies. It has been concluded that it is affecting the financial performance of the companies and is empirically supported by past studies. It will make investing easier for anyone interested in the Turkish market. It also helps them foresee their profitability and estimate their risk. It is regarded as a crucial tool for decision-makers to determine the intended course of action in light of the impact of currency mercurial and to enable them to modify their policies in light of the present dynamics.

show abstract

“…In addition, the theory of exchange rates has a negative effect on FDI explained by Kawai & Naknoi, (2015) who found the exchange rate had a significant negative impact on FDI in the ASEAN economy. However, in the research conducted by Bilawal et al, (2014); Hsu et al, (2019) found that exchange rates in Pakistan and Nigeria have a positive effect on FDI.…”

Section: Literature Reviewmentioning

confidence: 95%

Global Crisis and Economic Fundamentals: Its Impact on Foreign Direct Investment in ASEAN Countries

Zuhroh

Harpiyansa

2022

EKU

View full text Add to dashboard Cite

Foreign direct investment has an important role in the running of a country's economy. This study aims to analyze the role of macroeconomic fundamentals consisting of Gross Domestic Product (GDP), interest rates, exchange rates, and exports in influencing Foreign Direct Investment (FDI) in the ASEAN 6 region (Indonesia, Malaysia, Singapore, Thailand, the Philippines, and Vietnamese). The data used are from 1990-2019 sourced from the World Bank and UNCTAD. The method used is panel data regression and time series with the best model selection, namely the Random Effect Model. The results of panel data analysis show that GDP, interest rates, exchange rates, and exports are the determinants of FDI in ASEAN 6 with a significant probability value. The positive direction coefficient is indicated by the GDP and exchange rate variables, while interest rates and exports indicate a negative direction coefficient. The results of the time-series data confirm that each country has similar results in the panel data analysis, but interest rates in Malaysia have the largest negative effect on FDI in Malaysia. Meanwhile, the exchange rate and exports contributed positively with the largest coefficient for Indonesia. The 1998 and 2008 economic crises were also found to have a negative impact on FDI but not significantly in some countries.

show abstract

Impact of Exchange Rate on Foreign Direct Investment in Pakistan

Cited by 20 publications

References 30 publications

Do environmental quality, financial inclusion, and good governance ensure the FDI sustainably in Belt and Road countries? Evidence from an application of CS-ARDL and NARDL

Do environmental quality, financial inclusion, and good governance ensure the FDI sustainably in Belt and Road countries? Evidence from an application of CS-ARDL and NARDL

Challenges faced by foreign companies in Turkey due to volatility of the local currency

Global Crisis and Economic Fundamentals: Its Impact on Foreign Direct Investment in ASEAN Countries

Contact Info

Product

Resources

About