On the impact of private capital flows on economic growth and development
This 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.
|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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