The Singapore dollar in inward and outward foreign direct investment

48 p.Inward and outward foreign direct investment play a significant role to Singapore's economy. As exchange rate will affect these two factors of growth, the current strong Singapore Dollar has caused a concern on Singapore position in these investment policies. In this study, we try to explore the role of exchange rate on inward and outward foreign direct investment. The individual country models suggest that the real exchange rate has a significant effect on some of the source and host countries for Singapore inward and outward foreign direct investment. In pooled regressions, the results suggest that the real exchange rate has a significant negative effect on inward foreign direct investment and no significant effect on outward foreign direct investment. Finally, the paper considers some of the policy implications of these findings for Singapore.BUSINES