Real Exchange Rates, Economic Complexity, and Investment /

We show that the response of firm-level investment to real exchange rate movements varies depending on the production structure of the economy. Firms in advanced economies and in emerging Asia increase investment when the domestic currency weakens, in line with the traditional Mundell-Fleming model....

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Detaylı Bibliyografya
Yazar: Brito, Steve
Diğer Yazarlar: Magud, Nicolas, Sosa, Sebastian
Materyal Türü: Dergi
Dil:English
Baskı/Yayın Bilgisi: Washington, D.C. : International Monetary Fund, 2018.
Seri Bilgileri:IMF Working Papers; Working Paper ; No. 2018/107
Online Erişim:Full text available on IMF
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100 1 |a Brito, Steve. 
245 1 0 |a Real Exchange Rates, Economic Complexity, and Investment /  |c Steve Brito, Nicolas Magud, Sebastian Sosa. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2018. 
300 |a 1 online resource (21 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We show that the response of firm-level investment to real exchange rate movements varies depending on the production structure of the economy. Firms in advanced economies and in emerging Asia increase investment when the domestic currency weakens, in line with the traditional Mundell-Fleming model. However, in other emerging market and developing economies, as well as some advanced economies with a low degree of structural economic complexity, corporate investment increases when the domestic currency strengthens. This result is consistent with Diaz Alejandro (1963)-in economies where capital goods are mostly imported, a stronger real exchange rate reduces investment costs for domestic firms. 
538 |a Mode of access: Internet 
700 1 |a Magud, Nicolas. 
700 1 |a Sosa, Sebastian. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2018/107 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2018/107/001.2018.issue-107-en.xml  |z IMF e-Library