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
Authors:	van Wijnbergen, Sweder ; Franken, Corine
Publisher:	Amsterdam and Rotterdam : Tinbergen Institute
Subject:	Private capital inflows \| Low Income Countries \| Lucas Paradox

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Series:	Tinbergen Institute Discussion Paper ; 10-003/2
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	839173318 [GVK] hdl:10419/86853 [Handle] RePEc:dgr:uvatin:20100003 [RePEc]
Classification:	F21 - International Investment; Long-Term Capital Movements ; G15 - International Financial Markets
Source:	EconStor

Persistent link: https://www.econbiz.de/10010325838