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Prasad, E.S., Rajan, R.G. and Subramanian, A. (2007) Foreign Capital and Economic Growth. Brookings Papers on Economic Activity, Vol. 1, 153-230. http://dx.doi.org/10.1353/eca.2007.0016

has been cited by the following article:

• TITLE: A Note on the Investment-Enhancing Effect of a Depreciated Real Exchange Rate

  AUTHORS: Pham Van Dai

  KEYWORDS: Real Exchange Rate, Depreciation, Capital Accumulation, Adjustment Cost of Investment

  JOURNAL NAME: Theoretical Economics Letters, Vol.5 No.1, January 28, 2015

  ABSTRACT: This paper presents a mechanism through which a depreciated real exchange rate can lead to a higher investment rate. In an intertemporal framework, it shows that a depreciated real exchange rate can make the tradable sector more profitable and thus a greater requirement for capital. Moreover, the investment-enhancing effect of a depreciated real exchange rate decreases in magnitude when there is higher adjustment cost of investment.