Capital flows to developing countries
Subtitle: the allocation puzzle
By: Pierre-Olivier Gourinchas, Olivier Jeanne
Contributors: Jeanne, Olivier; National Bureau of Economic Research
Series: NBER working paper series -- working paper 13602; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13602.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] :
Description: "According to the consensus view in growth and development economics, cross country differences in per-capita income largely reflect differences in countries' total factor productivity.  We argue that this view has powerful implications for patterns of capital flows: everything else equal, countries with faster productivity growth should invest more, and attract more foreign capital.  We then show that the pattern of net capital flows across developing countries is not consistent with this prediction.  If anything, capital seems to flow more to countries that invest and grow less.  We argue that this result -- which we call the allocation puzzle -- constitutes an important challenge for economic research, and discuss some possible research avenues to solve the puzzle"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 12/4/2007.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.