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Title: |
The Effects of Inflation and Exchange Rate
Policies on Direct Investment to Developing Countries |
| Author: |
Ahn, Young Seok;
Adji, Slamet Seno; Willett, Thomas D. |
| Author
Affiliation: |
Korea
Development Institute; National Development Planning Agency, Indonesia;
Claremont Mckenna College |
| Source: |
International Economic Journal, Spring 1998, v. 12, no. 1, pp. 95-104 |
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Publication Date: |
Spring 1998 |
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Abstract: |
This study focuses on the effects of
inflation and exchange rate policy on direct investment flows to
developing countries. We find that inflation does have a substantial
negative effect on capital inflows. Our estimates indicate that this
effect can be significantly reduced, but not eliminated, by following
exchange rate policies which avoid substantial overvaluation of the
currency. |
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