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Financial Crisis in the United States

Financial Crisis in the United States

4136 руб.
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This work analyzes the relationship between financial crisis and FDI inflow in the United States. Financial crisis is measured through such economic and financial parameters as S&P 500 index, S&P/Case-Shiller home price index, and national unemployment rate. FDI is understood as the investment defined by the IMF – “the acquisition of at least ten percent of the ordinary shares or voting power in a public or private enterprise by nonresident investors.” In three separate functions it is analyzed whether there is a significant evidence of relationship between FDI and unemployment, S&P 500 price index, and S&P/Case- Shiller Home price index. Also a model looking at significance of S&P 500 and S&P/Case-Shiller indices in predicting FDI is analyzed. The model analyses showed that FDI does a good job in predicting S&P 500 and S&P/Case-Shiller indices, and does not predict unemployment. Also, S&P 500 and S&P/Case-Shiller indices together do not predict FDI, but S&P/Case-Shiller index separately does. The findings of the study will be helpful for decision makers of multinational companies having a significant share of foreign investments.