Comparatively speaking, increases in the share of imported inputs in domestic production of either non-commodity exports or domestic consumption goods has only modest effects on the variances. Increased specialization in domestic production, modelled as a lower elasticity of substitution between domestic and import inputs, generated significantly higher exchange rate variability but has limited effects on the variance of interest rates or the real economy.
5  Investment rates in some of the major East Asian developing economies, excluding China, plunged more than 10 percentage points of GDP after their peak in the mid-1990s and generally stayed depressed thereafter.