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Foreign capital in a neoclassical model of growth

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  • Ying-Foon Chow
  • Jinli Zeng

Abstract

The impact of foreign capital inflows on the growth of developing countries remains controversial. Utilizing the neoclassical growth model, this paper shows that foreign capital inflows have a positive effect on the capital stock and consumption in the long run.

Suggested Citation

  • Ying-Foon Chow & Jinli Zeng, 2001. "Foreign capital in a neoclassical model of growth," Applied Economics Letters, Taylor & Francis Journals, vol. 8(9), pages 613-615.
    • Handle: RePEc:taf:apeclt:v:8:y:2001:i:9:p:613-615
    DOI: 10.1080/13504850010025691
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    References listed on IDEAS

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    1. Lee, Jong-Wha, 1995. "Capital goods imports and long-run growth," Journal of Development Economics, Elsevier, vol. 48(1), pages 91-110, October.
    2. Chao, Chi-Chur & Yu, Eden S. H., 1994. "Foreign capital inflows and welfare in an economy with imperfect competition," Journal of Development Economics, Elsevier, vol. 45(1), pages 141-154, October.
    3. Chandra, Vandana & Khan, M Ali, 1993. "Foreign Investment in the Presence of an Informal Sector," Economica, London School of Economics and Political Science, vol. 60(237), pages 79-103, February.
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    Cited by:

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    2. Raquel Díaz Vázquez, 2003. "La globalización, inversión extranjera y desigualdades regionales," Revista de Economía Crítica, Asociación de Economía Crítica, vol. 1, pages 229-256.
    3. Behnaz Heidarzadeh & Mohammad Nabi Shahiki Tash, 2013. "Investigating the Impact of Market Power on Foreign Direct Investment Absorption in Concentrated and Unconcentrated Industries in Iran," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 1(2), pages 67-75.

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