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Increased Capital Mobility and Policy Reform in Developing Countries

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Author Info
Anne O. Krueger (Stanford University)
Abstract

Since the 50s and the 60s when Ramaswamy deliberated on issues of development, developing economies have undergone major changes. Increased urbanisation, introduction of more complex and sophisticated technologies and reduced dependence on exports of primary commodities have brought in their wake considerable changes which warrant a new outlook on development policies. At the centre of this is the capability of governments to regulate economic activity and the associated insulation of domestic economics from international markets denoted here by the term "inner oriented" policies. Moreover, the belief that the Great Depression and the Second World War had destroyed the private international capital markets, which was borne out by the fact that during 50s and the 60s international capital flows were over-whelmingly on official account, is no longer valid today. This paper first reviews what is now understood as a "stylised fact" of inner oriented developing countries' economic performance and then consider how the presence of sizeable private capital flows has altered the situation.

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Publisher Info
Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.

Volume (Year): 31 (1996)
Issue (Month): 1 (January)
Pages: 1-21
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Handle: RePEc:dse:indecr:v:35:y:1996:i:1:p:1-21

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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This page was last updated on 2009-12-21.


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