Detail Information
| Category | Article |
|---|---|
| Author | Khotamov, Navruz：Naoto Jinj |
| Article Title | Correlation aversion in foreign direct investment |
| Institution | Finance Research Letters |
| Volume | Vol.74 |
| Number | |
| Page | 1-5頁 |
| Date | 2025/03/01 |
| Abstract | Decisions under risk are often multidimensional, where the preferences of the investor depend on several factors. Investment theory implies that in the presence of different shocks, the correlation between these shocks is important. This study analyzes the relationship between the correlation of two shocks and foreign direct investment (FDI). The sources of shocks, in this study, are related to demand and exchange rate in the destination market. Constructing large panel data on industry-level FDI, we analyze FDI under correlation risk. We show that in the presence of two shocks, industry-level FDI flows exhibit correlation aversion and that the correlation of two distinct shocks explains significant variation in geographic allocation of FDI at the industry-level. |
| Notes | |
| URL | https://www.sciencedirect.com/science/article/pii/S1544612324017574?via%3Dihub |
| Label | 経済学, 不確実性, 多国籍企業 |
| Register date | 2025/01/16 |
