The space for doing this can be increased by introducing measures to control and regulate international capital flows as well as the operations of the domestic financial sector. Countries like Chile and Malaysia have managed to follow this course for a certain period of time with some degree of success. The right mix of these policies can be applied deliberately so as to promote investment in specific industries at specific times, and especially in sectors with the greatest potential for upgrading skills, reaping economies of scale and raising productivity growth, thereby increasing the rates of return on investment. A depreciated real exchange rate lowers labour costs and enhances the competitiveness of labour-intensive exports.