The effect of exchange rate volatility and selected economic indicators on foreign direct investment inflows in the Philippines

The Philippines, as a developing country, already has a vital role in the international market, especially since it has been recognized that there is a need to boost FDI in the country. The study aims to know the impact of exchange rate, exchange rate volatility, interest rate and real GDP on FDI as...

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Bibliographic Details
Main Authors: Aquino, Karen Catherine, Lee, Agnes Therese, Nunez, Carla Mae, Peig, Christelle
Format: text
Language:English
Published: Animo Repository 2014
Subjects:
Online Access:https://animorepository.dlsu.edu.ph/etd_bachelors/8049
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Institution: De La Salle University
Language: English
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Summary:The Philippines, as a developing country, already has a vital role in the international market, especially since it has been recognized that there is a need to boost FDI in the country. The study aims to know the impact of exchange rate, exchange rate volatility, interest rate and real GDP on FDI as well as the Philippine economy. Several econometric tests have been performed, mainly the multiple linear regression model (MLRM) and vector autoregression model (VAR), to prove the relationship of these key variables on the country's investments and economy. The research is able to identify that all of the variables have an effect on FDI and the country's economy, substantially but not immediately. Other tests were conducted to further prove the relationship among the parameters.