The Cyclical Nature of North-South FDI Flows

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dc.creator Levy Yeyati, Eduardo
dc.creator Panizza, Ugo
dc.creator Stein, Ernesto H.
dc.date 2011-02-04T21:22:43Z
dc.date 2011-02-04T21:22:43Z
dc.date 2003-01-01
dc.date 2003-01-01
dc.date.accessioned 2014-09-08T23:21:26Z
dc.date.available 2014-09-08T23:21:26Z
dc.date.issued 2014-09-08
dc.identifier http://www.iadb.org/en/publications/publication-detail,7101.html?id=6290
dc.identifier.uri https://saber.ucab.edu.ve/xmlui/handle/123456789/15668
dc.description In this paper, we examine how the business and interest rate cycles in developed countries affect FDI to developing countries. After aggregating flows into three big source areas (the U.S., Europe and Japan), we find FDI flows to be countercyclical with respect to both output and interest rate cycles in the first two, whereas in Japan they display either no cyclical behavior or mild procyclical behavior. This finding is consistent with the fact that FDI outflows and local investment tend to move in opposite directions during the cycles in the U.S. and Europe, reflecting investors' arbitrage among different investment opportunities. In sum, and contrary to what is usually claimed, we conclude that recessions in industrial countries are likely to increase FDI flows, particularly to those countries with close ties with the U.S. and Europe.
dc.format ACROBAT
dc.language en
dc.relation IDB Working Paper Series
dc.subject Integração e Comércio
dc.subject Integration & Trade
dc.subject Integración y comercio
dc.subject WP-479
dc.title The Cyclical Nature of North-South FDI Flows
dc.type Working Papers


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