Financial development, international capital flows, and aggregate output
نویسندگان
چکیده
منابع مشابه
Financial Development, International Capital Flows, and Aggregate Output
We develop a tractable two-country overlapping-generations model and show that cross-country differences in financial development can explain three recent empirical patterns of international capital flows: Financial capital flows from relatively poor to relatively rich countries, while foreign direct investment flows in the opposite direction; net capital flows go from poor to rich countries; d...
متن کاملFinancial Development, International Captial Flows, and Aggregate Output
We develop a tractable two-country overlapping-generations model and show that cross-country differences in financial development can explain three recent empirical patterns of international capital flows: Financial capital flows from relatively poor to relatively rich countries, while foreign direct investment flows in the opposite direction; net capital flows go from poor to rich countries; d...
متن کاملFinancial Development and International Capital Flows
We develop a general equilibrium model with financial frictions in which equity and credit have different rates of return. Financial development raises the loan rate but has a non-monotonic effect on the equity return. We then show in a two-country model that capital account liberalization leads to outflow of financial capital from the country with less developed financial system. However, the ...
متن کاملFinancial Development and the Patterns of International Capital Flows ∗
We develop a tractable two-country overlapping generations model and show analytically that the cross-country differences in financial development help explain three recent empirical facts characterizing international capital flows: financial capital flows from relatively poor to relatively rich countries while FDI flows in the opposite direction; net capital flows are from poor to rich countri...
متن کاملInternational Capital Flows and Development: Financial Openness Matters
Does capital flow from rich to poor countries? We revisit the Lucas paradox and explore the role of capital account restrictions in shaping capital flows at various stages of economic development. We find that, when accounting for the degree of capital account openness, the prediction of the neoclassical theory is confirmed: less developed countries tend to experience net capital inflows and mo...
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ژورنال
عنوان ژورنال: Journal of Development Economics
سال: 2014
ISSN: 0304-3878
DOI: 10.1016/j.jdeveco.2013.08.010