Rare Institutional Disruptions and Uphill Capital Flows

Globalization : What to Think When Capital Flows Uphill

Capital Flows and Capital Goods*

Studying the relation between equity market liberalization and imports of capital goods, we examine one channel through which international financial integration can promote growth. For the period 1980-1997, we find that after controlling for other policies and fundamentals, stock market liberalizations are associated with a significant increase in the share of imports of machinery and equipmen...

Uphill solitary waves in granular flows.

We have experimentally observed uphill solitary waves in the surface flow on a granular material. A heap is constructed by injecting sand between two vertical glass plates separated by a distance much larger than the average grain size, with an open boundary. As the heap reaches the open boundary, solitary fluctuations appear on the flowing layer and move "up the hill" (i.e., against the direct...

Capital Flows

In this paper, we reexamine the question “Why doesn’t capital ßow from rich to poor countries?” posed by Lucas (1990). Our Þndings suggest that even if capital ßows freely it will ßow to middle income countries rather than to poor countries. We start with the stylized fact that poorer countries have high intermediation costs, and develop a simple disaggregation of the neoclassical production fu...

Bubbles and capital flows

This paper presents a stylized model of international trade and asset price bubbles. Its central insight is that bubbles tend to appear and expand in countries where productivity is low relative to the rest of the world. These bubbles absorb local savings, eliminating inefficient investments and liberating resources that are in part used to invest in high productivity countries. Through this ch...