Bakardzhieva, Damyana
[Verfasser:in]
;
Ben Naceur, Sami
[Sonstige Person, Familie und Körperschaft];
Kamar, Bassem
[Sonstige Person, Familie und Körperschaft]
The Impact of Capital and Foreign Exchange Flows on the Competitiveness of Developing Countries
Erschienen in:IMF Working Papers, Vol. , pp. 1-30, 2010
Umfang:
1 Online-Ressource (31 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.1760354
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 2010 erstellt
Beschreibung:
Attracting capital and foreign exchange flows is crucial for developing countries. Yet, these flows could lead to real exchange rate appreciation and may thus have detrimental effects on competitiveness, jeopardizing exports and growth. This paper investigates this dilemma by comparing the impact of six types of capital and foreign exchange flows on real exchange rate behavior in a sample of 57 developing countries covering Africa, Europe, Asia, Latin America, and the Middle East. The results reveal that portfolio investments, foreign borrowing, aid, and income lead to real exchange rate appreciation, while remittances have disparate effects across regions. Foreign direct investments have no effect on the real exchange rate, contributing to resolve the above dilemma