Foreign Capital and Economic Growth

We document the recent phenomenon of uphill flows of capital from nonindustrial toindustrial countries and analyze whether this pattern of capital flows has hurt growth innonindustrial economies that export capital. Surprisingly, we find that there is a positivecorrelation between current account balances and growth among nonindustrial countries,implying that a reduced reliance on foreign capital is associated with higher growth...

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Year of publication:	2007-11-01
Authors:	Prasad, Eswar S. ; Rajan, Raghuram Govind ; Subramanian, Arvind
Institutions:	Forschungsinstitut zur Zukunft der Arbeit <Bonn>
Subject:	Finanzwirtschaft \| corporate finance \| Kapitalverkehr \| Capital flows \| Globalisierung

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Extent:	65 p. application/pdf
Series:	IZA Discussion Papers IZA Discussion Paper ; No. 3186 (2007)
Type of publication:	Book / Working Paper
Language:	English
Classification:	E2 - Consumption, Saving, Production, Employment, and Investment ; F3 - International Finance ; F4 - Macroeconomic Aspects of International Trade and Finance ; O4 - Economic Growth and Aggregate Productivity ; Employment of capital, capital investment planning and estimate of investment profitability ; Corporate finance and investment policy. Other aspects ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005861353