A solution to two paradoxes of international capital flows / / prepared by Jiandong Ju and Shang-Jin Wei

• Autore: Ju Jiandong
• Pubblicazione: [Washington, D.C.], : International Monetary Fund, Middle East and Central Asia Dept., 2006
• Edizione: 1st ed.
• Descrizione fisica: 1 online resource (39 p.)
• Soggetto topico: Capital movements - Mathematical models; International finance
• Altri autori: WeiShang-Jin
• Note generali: "July 2006."
• Nota di contenuto: ""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""
• Sommario/riassunto: 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.
• Titolo autorizzato: A Solution to Two Paradoxes of International Capital Flows
• ISBN: 1-4623-0944-5; 1-4527-4206-5; 1-283-51165-7; 1-4519-8797-8; 9786613824103
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910808810903321
• Lo trovi qui: Univ. Federico II
• Serie: IMF working paper ; ; WP/06/178.