On the impact of private capital flows on economic growth and development
AbstractThis paper raises two different, but related, questions: On the one hand, is there a link between international capital flows and economic growth? On the other hand, is there a link between international capital flows and development? We address the first question using a structural econometric model and we find a significantly positive relationship between capital flows and growth. This relationship is robust to various measures of capital flows. As to the second question, we perform a simple correlation analysis. We do not find any significant correlation between capital flows and development.
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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 05-003.RS.
Length: 37 p.
Date of creation: Apr 2005
Date of revision:
Publication status: Published by: Université Libre de Bruxelles, Solvay Business School, Centre Emile Bernheim (CEB)
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capital flows; economic growth; development.;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
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