Country Portfolios
Capital flows to developing countries are small and take mostly the form of loans rather than direct foreign investment. We build a simple model of North-South capital flows that highlights the interplay between diminishing returns, production risk...
| Main Authors: | , , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/06/4979487/country-portfolios http://hdl.handle.net/10986/14013 |
| Summary: | Capital flows to developing countries
are small and take mostly the form of loans rather than
direct foreign investment. We build a simple model of
North-South capital flows that highlights the interplay
between diminishing returns, production risk and sovereign
risk. This model generates a set of country portfolios and a
world distribution of capital stocks that resemble those in
the data. |
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