Financial Development and the Patterns of International Capital Flows
We develop a tractable two-country overlapping-generations model and show that cross-country differences in financial development can explain three recent empirical patterns of international capital fl ows: Financial capital fl ows from relatively poor to relatively rich countries while foreign direct investment flows in the opposite direction; net capital fl ows go from poor to rich countries; despite of its negative net international investment positions, the United States receives a positive net investment income. We also explore the welfare and distributional effects of international capital fl ows and show that the patterns of capital flows may reverse along the convergence process of a developing country.
|Date of creation:||Apr 2010|
|Date of revision:|
|Publication status:||Published in SMU Economics and Statistics Working Paper Series|
|Contact details of provider:|| Postal: 90 Stamford Road, Singapore 178903|
Phone: 65-6828 0832
Fax: 65-6828 0833
Web page: http://www.economics.smu.edu.sg/
More information through EDIRC
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kosuke Aoki & Gianluca Benigno & Nobuhiro Kiyotaki, 2009.
"Capital flows and asset prices,"
LSE Research Online Documents on Economics
25487, London School of Economics and Political Science, LSE Library.
- Kosuke Aoki & Gianluca Benigno & Nobuhiro Kiyotaki, 2009. "Capital Flows and Asset Prices," CEP Discussion Papers dp0921, Centre for Economic Performance, LSE.
- Kosuke Aoki & Gianluca Benigno & Nobuhiro Kiyotak, 2007. "Capital flows and asset prices," LSE Research Online Documents on Economics 3168, London School of Economics and Political Science, LSE Library.
- Richard H. Clarida, 2007.
"G7 Current Account Imbalances: Sustainability and Adjustment,"
National Bureau of Economic Research, Inc, number clar06-2, September.
- Richard H. Clarida, 2006. "G7 Current Account Imbalances: Sustainability and Adjustment," NBER Working Papers 12194, National Bureau of Economic Research, Inc.
- Jürgen von Hagen, 2009.
"International Capital Flows and World Output Gains,"
2009 Meeting Papers
311, Society for Economic Dynamics.
- Juergen von Hagen & Haiping Zhang, 2010. "International Capital Flows and World Output Gains," Working Papers 01-2010, Singapore Management University, School of Economics.
- Devereux, Michael B. & Sutherland, Alan, 2009.
"A portfolio model of capital flows to emerging markets,"
Journal of Development Economics,
Elsevier, vol. 89(2), pages 181-193, July.
- Michael B Devereux & Alan Sutherland, 2009. "A Portfolio Model of Capital Flows to Emerging Markets," Working Papers 082009, Hong Kong Institute for Monetary Research.
- Matthew Higgins & Thomas Klitgaard & Cédric Tille, 2006. "Borrowing without debt? Understanding the U.S. international investment position," Staff Reports 271, Federal Reserve Bank of New York.
- Aoki, Kosuke & Benigno, Gianluca & Kiyotaki, Nobuhiro, 2010.
"Adjusting to Capital Account Liberalization,"
CEPR Discussion Papers
8087, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:siu:wpaper:02-2010. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (QL THor)
If references are entirely missing, you can add them using this form.