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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. anonymous, 1995. "Does the bouncing ball lead to economic growth?," Regional Update, Federal Reserve Bank of Atlanta, issue Jul, pages 1-2,4-6.
    2. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    3. J. Mercenier & Erin Yeldan, 1996. "On Turkey's Trade Policy : Is A Customs Union with Europe Enough?," Working Papers 9604, Department of Economics, Bilkent University.
    4. Goulder, Lawrence H. & Summers, Lawrence H., 1989. "Tax policy, asset prices, and growth : A general equilibrium analysis," Journal of Public Economics, Elsevier, pages 265-296.
    5. Goulder, Lawrence H. & Summers, Lawrence H., 1989. "Tax policy, asset prices, and growth : A general equilibrium analysis," Journal of Public Economics, Elsevier, pages 265-296.
    6. Xavier Sala-I-Martin, 1997. "Transfers, Social Safety Nets, and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 81-102, March.
    7. Go, Delfin S., 1994. "External shocks, adjustment policies and investment in a developing economy: Illustrations from a forward-looking CGE model of the Philippines," Journal of Development Economics, Elsevier, pages 229-261.
    8. Mercenier, Jean & Yeldan, Erinc, 1997. "On Turkey's trade policy: Is a customs union with Europe enough?," European Economic Review, Elsevier, vol. 41(3-5), pages 871-880, April.
    9. Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834, January.
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    Cited by:

    1. M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," PIDE-Working Papers 2007:16, Pakistan Institute of Development Economics.
    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. repec:rss:jnljfe:v1i2p3 is not listed on IDEAS

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