04673oam 22012254 450 991095611870332120250426110725.0978661382410397814623094431462309445978145274206914527420659781283511650128351165797814519879731451987978(CKB)3360000000443404(EBL)3014334(SSID)ssj0000943961(PQKBManifestationID)11528590(PQKBTitleCode)TC0000943961(PQKBWorkID)10978445(PQKB)11141296(OCoLC)698585528(IMF)WPIEE2006178(MiAaPQ)EBC3014334(IMF)WPIEA2006178WPIEA2006178(EXLCZ)99336000000044340420020129d2006 uf 0engurcn|||||||||txtccrA Solution to Two Paradoxes of International Capital Flows /Shang-Jin Wei, Jiandong Ju1st ed.Washington, D.C. :International Monetary Fund,2006.1 online resource (39 p.)IMF Working Papers"July 2006."9781451864380 1451864388 ""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 financeBalance of tradeimfCapital flowsimfCapital movementsimfCommercial policyimfE-CommerceimfExports and ImportsimfFinanceimfForeign direct investmentimfIncome economicsimfInternational economicsimfInternational InvestmentimfInternational Trade OrganizationsimfInvestments, ForeignimfLabor DemandimfLaborimfLabourimfLong-term Capital MovementsimfRetail and Wholesale TradeimfSelf-employedimfSelf-employmentimfTrade in goodsimfTrade liberalizationimfTrade PolicyimfUnited StatesimfCapital movementsMathematical models.International finance.Balance of tradeCapital flowsCapital movementsCommercial policyE-CommerceExports and ImportsFinanceForeign direct investmentIncome economicsInternational economicsInternational InvestmentInternational Trade OrganizationsInvestments, ForeignLabor DemandLaborLabourLong-term Capital MovementsRetail and Wholesale TradeSelf-employedSelf-employmentTrade in goodsTrade liberalizationTrade PolicyWei Shang-Jin118987Ju Jiandong1201424National Bureau of Economic Research.DcWaIMFBOOK9910956118703321A Solution to Two Paradoxes of International Capital Flows4371404UNINA