0000000000744450
AUTHOR
Aleksandar Shivarov
Exposure to Exchange Rate Risk and Competitiveness: An Application to South-Eastern Europe
Our chapter investigates the economic exposure to currency risk of stock markets from nine countries in South-Eastern Europe using bilateral exchange rates of the domestic currencies against their main trading partners’ currencies between 1999 and 2015. The relevance and magnitude of exposures are investigated through changes in exchange rates in linear and non-linear specifications. Our results indicate that these economies show contemporaneous exposure to currency risk, but they are different in size and sign from one country to another and from one currency to another, a result that can be explained by the dissimilar economic structures in the region. There is smaller evidence for asymme…
On the Location Attractiveness of Emerging Countries for Foreign Direct Investments
Our paper investigates the FDI attracting potential of emerging markets by in terms of their location attributes. We use Statistical cluster analysis to study the dynamic evolution of emerging markets’ clusters, based on country attributes that are relevant for the MNEs location decision. We find that countries tend to be grouped at a geographical level or depending on the various resources they possess, except for China that clusters independently. Also, there are numerous countries’ transitions from one cluster to another over the years, which indicate a natural process of changing location attributes and market development for many emerging economies.