INTERESET RATE UNCERTAINTY AND FDI PRE-GLOBALISATION

William Vukson

doi:10.20472/ES.2017.6.1.004

Authors

William Vukson Centre for Automotive Sustainability, Canada Author

DOI:

https://doi.org/10.20472/ES.2017.6.1.004

Keywords:

Exchange Rates, Uncertainty, Private Sustainability, Corporate Growth, 1970s, 1980s, Nixon, Reagan, Carter, Giscard d'Estaing, Helmut Schmidt, Snake Agreement, EMU, ERM

Abstract

Exchange Rate uncertainty prior to the Euro were deemed an important impediment to Foreign Direct Investment Flows. This paper confirms that they were the main cause preventing optimal Private Corporate Sustainability during this era. This paper was researched with several industries in mind; automotive; textile and manufacturing sectors. It continues to serve as a key pillar for private sustainability goals in the automotive sector. Exchange Rate Uncertainty supercedes the effects of tax rate differentials and real wage rate differentials. The methodology used was OLS econometric techniques and the data was transformed into annual growth rates in order to achieve scientific compatibilities in my research methodology.

Data:
Received: 6 Mar 2017
Revised: 18 Apr 2017
Accepted: 6 May 2017
Published: 20 May 2017