02009cas a2200277 a 4500 AALejournalIMF006525 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455201372 1018-5941 BD-DhAAL BD-DhAAL Kamar, Bassem. The Impact of Capital and Foreign Exchange Flowson the Competitiveness of Developing Countries / Bassem Kamar, Damyana Bakardzhieva, Samy Ben Naceur, Sami Ben Naceur. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Attracting capital and foreign exchange flows is crucial for developing countries. Yet, these flows could lead to real exchange rate appreciation and may thus have detrimental effects on competitiveness, jeopardizing exports and growth. This paper investigates this dilemma by comparing the impact of six types of capital and foreign exchange flows on real exchange rate behavior in a sample of 57 developing countries covering Africa, Europe, Asia, Latin America, and the Middle East. The results reveal that portfolio investments, foreign borrowing, aid, and income lead to real exchange rate appreciation, while remittances have disparate effects across regions. Foreign direct investments have no effect on the real exchange rate, contributing to resolve the above dilemma. Mode of access: Internet Bakardzhieva, Damyana. Ben Naceur, Sami. Ben Naceur, Samy. IMF Working Papers; Working Paper ; No. 2010/154 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/154/001.2010.issue-154-en.xml IMF e-Library