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 …

alternative for emerging economies. While most arguments for and against dollarisation are grounded in theory, there is a … volatility, especially in the past decade. Nevertheless, dollarised countries benefit from higher levels of investment and trade …