Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/190016 
Authors: 
Year of Publication: 
2017
Series/Report no.: 
WIDER Working Paper No. 2017/171
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
According to a standard economic theory, capital should flow from rich capital-abundant countries to poor capital-scarce countries. However, a reverse pattern has prevailed in the world economy. This is the so-called Lucas paradox. In addition, it has been shown that counterintuitively there is negative correlation between capital inflow and productivity growth across developing countries. This is the so-called allocation puzzle. This survey attempts to shed light on the following questions: 1) What are the patterns of international capital flows in the world economy? 2) What are the most plausible explanations for these patterns? 3) What are the possible implications of these developments for developing countries?
Subjects: 
international capital flows
Lucas paradox
allocation puzzle
JEL: 
F21
F41
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-397-4
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.