Abstract
We study -threshold corrections in an eight dimensional S-dual pair of string theories, as a prototype of dual string vacua with sixteen supercharges. We show that the orbifold CFT description of D-string instantons gives rise to a perturbative expansion similar to the one appearing on the fundamental string side. By an explicit calculation, using the Nambu-Goto action in the static gauge, we show that the first subleading term agrees precisely on the two sides. We then give a general argument to show that the agreement extends to all orders.
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