PARTIAL DOLLARIZATION, EXCHANGE RATES, AND FIRM INVESTMENT IN PARAGUAY

Real exchange rates , dollarization and industrial

Nonlinearity In Exchange Rates and Forecasting

Dollarization, Exchange Rate Regimes and Government Quality

The dollarization of the domestic banking system represents a source of vulnerability for emerging market countries, and a debate has emerged over whether the exchange rate regime has an impact on the degree of dollarization. This paper argues that the regime is far less important than the literature has previously claimed. Unofficial dollarization results from a lack of faith in the domestic c...

Exchange Rates and Japanese Direct Investment in China

This paper analyzes FDI and exchange rate nexus in the context of Japanese direct investment in China. Using the data of Japanese direct investment in China’s nine manufacturing sectors from 1981 to 2001, the paper found that, there exists a significantly positive correlation between the bilateral real exchange rate of yen to yuan and Japanese direct investment in China. Specifically, the appre...

Exchange Rates and Foreign Direct Investment in Oligopolies

This paper examines the effects of exchange rates on R&D activities and international strategy choices of the oligopolies. We develop a three-stage game-theoretic model in which two firms located in two different countries (a developing and a developed one) choose the mode of foreign expansion in the first stage. They decide how much to spend on R&D, and how much to sell in domestic and foreign...