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Razmi, A., Rapetti, M. and Skott, P. (2012) The Real Exchange Rate and Economic Development. Structural Change and Economic Dynamics, 23, 151-169. http://dx.doi.org/10.1016/j.strueco.2012.01.002

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.