A Study on the Impact of Interest Rate Fluctuations on Foreign Direct Investment
DOI:
https://doi.org/10.54097/rypr8696Keywords:
Foreign Direct Investment, interest rate fluctuations, foreign direct investment flow.Abstract
Foreign Direct Investment (FDI) is an integral part of international economic cooperation, playing a significant role in promoting economic growth, technology transfer, and job creation. However, the impact of global financial market uncertainty and volatility, especially interest rate fluctuations, on foreign direct investment has long been a subject of scrutiny. This study employs a linear regression approach to empirically examine the influence of interest rate fluctuations on foreign direct investment. The empirical results reveal that interest rate changes do not have a significant impact on the flow of foreign direct investment. This research finding contributes to the understanding of the objective relationship between interest rate fluctuations and foreign investment, providing valuable information for policymakers and investors in making investment decisions.
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