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We make use of the inverse coupling matrix to achieve mutual coupling compensation for transmitter and receiver antenna arrays to improve the performance of a MIMO system. Using this approach, we assess the MIMO capacity as a function of spacing and number of elements in the receiving and transmitting antenna arrays. Our results reveal that the MIMO capacity is reduced when mutual coupling effects become pronounced. It is shown that the effect of coupling can be compensated using the information obtained from the mutual impedance matrices for transmitting/receiving arrays. The MIMO capacity can be significantly increased by compensating mutual coupling effects at one side or both sides of transmission. When both sides are compensated, the capacity becomes almost the same as for an ideal system in which mutual coupling is absent or can be fully neglected.