This paper examines the nexus between capital flows and real exchange rate in emerging Asian countries for 2000–2009. Capital flows here include foreign direct investment, portfolio investment, and other investment (bank loans) flows.
This paper notes that solid domestic institutions, swift policy responses, and a sound macroeconomic environment with adequate reserves have helped the Asia–Pacific region to manage well the adverse impacts of the global crisis.
The decline of investment in the five hardest-hit East Asian countries can be best explained by overinvestment prior to the Asian crisis and, hence, a return to more or less appropriate investment rates since the crisis.
This paper finds that trade policy openness, large domestic market, good macroeconomic management, as well as adequate infrastructure help to promote the structural shift of food exports toward high value-added food products.
This paper examine changes in the structure of international trade in developing Asia over the past 2 decades and finds that developing Asia continues to be vulnerable to a demand collapse in the G3 countries.