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A Theoretical Note on Sector-specific FDI Inflow in Developing Economies and the Real Exchange Rate

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dc.contributor.author Mandal, Biswajit
dc.contributor.author Bhattacharjee, Prasun
dc.date.accessioned 2021-06-03T11:02:05Z
dc.date.available 2021-06-03T11:02:05Z
dc.date.issued 2020
dc.identifier.issn 10.1177/0015732519894135
dc.identifier.uri https://vbudspace.lsdiscovery.in/xmlui/handle/123456789/247
dc.description The relationship between the inflow of capital and its effect on RER is relatively less explored in the literature. en_US
dc.description.abstract Using a hybrid of the Heckscher–Ohlin model and specific factor model of trade, this article considers the phenomenon of FDI inflows only in the exportable sector of developing economies. We investigate the impact of such capital flow on factor prices and the real exchange rate (RER) in the host country. Our results indicate that the exportable production expands while both the non-traded good production and the return to the factor specific to the non-traded good decrease, consequent upon an inflow of capital specific to the exportable sector. The effect of such inflow of foreign capital on the RER is unambiguous and it increases en_US
dc.language.iso en en_US
dc.publisher SAGE en_US
dc.relation.ispartofseries Vol 1 No 10;
dc.subject Foreign capital inflow, real exchange rate, developing economies, trade, special economic zone en_US
dc.title A Theoretical Note on Sector-specific FDI Inflow in Developing Economies and the Real Exchange Rate en_US
dc.type Article en_US


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