Foreign capital and the contractionary impact of currency devaluation, with an application to Jamaica

Luca Barbone ; Francisco Rivera-Batiz

The paper analyzes the effects of currency devaluation in a small open economy host to foreign capital. Using a short-run macroeconomic model of the Krugman-Taylor type, it is shown, that the presence of foreign capital provides devaluation with an additional contradictory mechanism, besides those already identified in the literature. The role of taxation policy in this context is examined. Finally, estimates of the relevant effects are offered for Jamaica

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Year of publication:	1987
Authors:	Barbone, Luca
Other Persons:	Rivera-Batiz, Francisco L. (contributor)
Published in:	Journal of development economics. - Amsterdam : Elsevier, ISSN 0304-3878, ZDB-ID 187117-1. - Vol. 26.1987, 1, p. 1-15
Subject:	Auslandsinvestition \| Foreign investment \| Wechselkurs \| Exchange rate \| Jamaika \| Jamaica

Extent:	2 Tab.
Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10015121976