The Philippine peso appreciation has been creating serious problems for the economy because of the high degree of unemployment and poverty incidence in the country. More specifically, it threatens contraction of the export sector through loss of competitiveness. The paper tracks the exchange...

This paper analyses the role of exchange rates in the competition for FDI. Based on the assumption that two countries compete for FDI from the same source country, the paper shows explicitly that the relative FDI of one country is determined by the relative real exchange rate between its...