This paper examines the link between real exchange rate volatility and domestic investment by using panel data … cointegration techniques. We study the empirical connection between real effective exchange rate volatility and investment for 51 … developing countries (23 low-income and 28 middle-income countries). The theoretical relationship between investment and real …

, since a tax increase reduces marginal returns but also increases depreciation and interest payment allowances. Using a panel … investment decisions, firms ignore the marginal rates paid by their stockholders, suggesting the presence of a corporate veil …