An empirical investigation of the relationship between the real exchange rate and net FDI inflows in Mauritius

Abstract

Purpose

The purpose of this paper is to find out the impact of real exchange rate on foreign direct investment (FDI) in Mauritius.

Design/methodology/approach

Autoregressive distributed lag time series methodology is used.

Findings

Real exchange rate depreciation enhances inflows of FDI in both the short and long run.

Originality/value

The research is original, and data used are from official sources.

Citation

Babubudjnauth, A. and Seetanah, B. (2020), "An empirical investigation of the relationship between the real exchange rate and net FDI inflows in Mauritius", African Journal of Economic and Management Studies, Vol. 11 No. 1, pp. 63-74. https://doi.org/10.1108/AJEMS-02-2019-0081