Biswas, Anindya and Mandal, Biswajit and Saha, Nitesh (2013): Foreign capital and exchange rate movement in developing economies: a theoretical note.
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Abstract
This study attempts to provide with underlying theoretical explanations for exchange rate appreciation due to foreign capital inflow. We use an extended three sector specific factor model to explain why and how an inflow of foreign capital boosts the price of a nontradable good that helps tilting the exchange in rate in favor of the host country. We also strive to look at the possible consequences on factor prices and on sectoral de-composition of a representative economy.
Item Type: | MPRA Paper |
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Original Title: | Foreign capital and exchange rate movement in developing economies: a theoretical note |
English Title: | Foreign capital and exchange rate movement in developing economies: a theoretical note |
Language: | English |
Keywords: | Foreign capital inflow, Real exchange rate, Developing economies |
Subjects: | F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements F - International Economics > F3 - International Finance F - International Economics > F3 - International Finance > F31 - Foreign Exchange |
Item ID: | 52468 |
Depositing User: | Biswajit Mandal |
Date Deposited: | 24 Dec 2013 06:31 |
Last Modified: | 26 Sep 2019 18:27 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/52468 |