Foreign direct investment and imperfect capital markets : count data analysis of Japanese FDI in the United States

• Main Author: Ho, Woon Yee
• Other Authors: Wang Peiming
• Format: Theses and Dissertations
• Published: 2008
• Subjects: DRNTU::Business::Finance::International finance::Foreign direct investment
• Institution: Nanyang Technological University

Between 1981 and 1990, FDI in Japan as a share of total US inward FDI increased four-fold. The increase coincided with the appreciating yen relative to the US dollar. While exchange rate changes can time FDI, Froot and Stein (1991) by assuming imperfect capital markets explain why exchange rate depr...