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After the 1980s, capital flows have accelerated in the less developed countries and since Salter's seminal paper in 1959, it has been widely accepted that the real exchange rate respond to capital flows. Based on a simple model derived by Sjaastad and Manzur (1996) along the lines of Salter...
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, the external terms of trade, and productivity in the manufacturing sector. A once-and-for-all unit increase in the ratio …
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foreign investors during the 1990s. The homelands comprise Armenia, Cuba, Iran, and Palestine. We pose the question: What are …
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