9 research outputs found
Exchange Rate Uncertainty and Import Demand of Thailand
This study investigates the impact of real exchange rate uncertainty on import demand of Thailand. The period of study is during July 1997 to December 2011. The results from bounds testing for cointegration show that all variables are cointegrated. Even though there is no short-run impact, but the long-run negative impact of real exchange rate uncertainty on real imports is large and highly significant under the floating exchange rate regime. In the long run, a rise in real exchange rate uncertainty can improve the country’s trade balance by substantially lowering import demand, but can harm industrial production at the same time. Therefore, stabilization of real effective exchange rate via major nominal exchange rates may deem necessary
Does Experience Matter for Patterns of Expansion by U.S. Companies in Latin America and the Caribbean?
Does Experience Matter for Patterns of Expansion by U.S. Companies in Latin America and the Caribbean
We describe expansion patterns by U.S. companies in Latin America and the Caribbean (LAC) between 1980 and 2005 using a unique sample that utilizes country, industry and time-series information on firms’ investments. We build on previous research to explore the effect of experience on firms’ preference for equity commitment. Using the time series properties of our data, we examine the extent to which previous investments in the region influence firms’ expansion patterns. Our analysis includes the traditional determinants of entry mode choices such as firm-specific factors, market seeking factors, resource seeking factors, and country specific factors. Bivariate probit results indicate that companies with previous experience in the region are more likely to commit equity going forward and this also holds for more recent companies with greater growth opportunities