This paper analyzes a useful accounting framework that breaks down the current account to twocomponents: a composition effect and a growth effect.We show that past empirical evidence, which stronglysupports the growth effect as the main driver of current account dynamics, is misconceived. The...

This paper provides a new theory of international capital ows. In a frameworkthat integrates factor-proportions-based trade and nancial capital ows, a novel forceemerges: capital tends to ow towards countries that become more specialized incapital-intensive industries. This `composition' eect...

"China's economy has been booming for decades now. Keyu Jin, an economist who was born in China and educated in the United States, brings her fluency in Eastern and Western cultures together to offer an explanation of how China became such a successful economic story. This book is a guide to the...