Stock Market Misvaluation and Foreign Direct Investment in the USA - a Cointegrating Relationship
The dynamics of misvaluation and Foreign Direct Investment (FDI) have long been debated in light of the efficient market hypothesis. Still, the existence of misvaluation in itself raises the eyebrows of economists as it would entail the possibility of cross-border arbitrage. Consequently, within the debate trying to enlighten the matter, the primary purpose of this thesis is to investigate the dyn