Private Capital Flows to Low Income Countries: Country-Specific Effects and the Lucas Paradox

This paper analyses Net Private Capital Flows to LICs incorporating the recent surge in FDI between 2000 and 2006. We show that including country-specific effects in a paneldata setup resolves the Lucas Paradox, at least for LICs. Our results suggest that openness is among the most important factors explaining country-specific performance in attracting Net Private Capital Flows.

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Year of publication:	2010-01-13
Authors:	Wijnbergen, Sweder van ; Franken, Corine
Institutions:	Tinbergen Institute
Subject:	Private capital inflows \| Low Income Countries \| Lucas Paradox

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Extent:	application/pdf
Series:	Tinbergen Institute Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Tinbergen Institute Discussion Papers Number 10-003/2
Classification:	F21 - International Investment; Long-Term Capital Movements ; G15 - International Financial Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008513216