04454oam 22011294 450 991078841500332120230828232631.01-4623-0944-51-4527-4206-51-283-51165-71-4519-8797-89786613824103(CKB)3360000000443404(EBL)3014334(SSID)ssj0000943961(PQKBManifestationID)11528590(PQKBTitleCode)TC0000943961(PQKBWorkID)10978445(PQKB)11141296(OCoLC)698585528(MiAaPQ)EBC3014334(IMF)WPIEE2006178(EXLCZ)99336000000044340420020129d2006 uf 0engurcn|||||||||txtccrA Solution to Two Paradoxes of International Capital Flows /Shang-Jin Wei, Jiandong JuWashington, D.C. :International Monetary Fund,2006.1 online resource (39 p.)IMF Working Papers"July 2006."1-4518-6438-8 ""Contents""; ""I. Introduction""; ""II. Paradoxes of International Capital Flows""; ""III. The Model""; ""IV. Aggregation and Equilibrium Conditions""; ""V. Comparative Statics""; ""VI. Free Trade and Capital Flows""; ""VII. Conclusions""; ""Appendix: Proofs""International capital flows from rich to poor countries can be regarded as either too low (the Lucas paradox in a one-sector model) or too high (when compared with the logic of factor price equalization in a two-sector model). To resolve the paradoxes, we introduce a non-neoclassical model which features financial contracts and firm heterogeneity. In our model, free patterns of gross capital flow emerge as a function of the quality of the financial system and the level of protection for property rights(i.e., the risk of expropriation. A poor country with an inefficient financial system but a low expropriation risk may simultaneously experience an outflow of financial capital but an inflow of foreign direct investment (FDI), resulting in a small net flow.IMF Working Papers; Working Paper ;No. 2006/178Capital movementsMathematical modelsInternational financeExports and ImportsimfLaborimfInternational InvestmentimfLong-term Capital MovementsimfLabor DemandimfRetail and Wholesale Tradeimfe-CommerceimfTrade PolicyimfInternational Trade OrganizationsimfInternational economicsimfLabourimfincome economicsimfFinanceimfCapital flowsimfSelf-employmentimfForeign direct investmentimfTrade in goodsimfTrade liberalizationimfCapital movementsimfSelf-employedimfInvestments, ForeignimfBalance of tradeimfCommercial policyimfUnited StatesimfCapital movementsMathematical models.International finance.Exports and ImportsLaborInternational InvestmentLong-term Capital MovementsLabor DemandRetail and Wholesale Tradee-CommerceTrade PolicyInternational Trade OrganizationsInternational economicsLabourincome economicsFinanceCapital flowsSelf-employmentForeign direct investmentTrade in goodsTrade liberalizationCapital movementsSelf-employedInvestments, ForeignBalance of tradeCommercial policyWei Shang-Jin118987Ju Jiandong1201424National Bureau of Economic Research.DcWaIMFBOOK9910788415003321A Solution to Two Paradoxes of International Capital Flows3802286UNINA