dc.contributor.author |
Zhang, Haiping |
en |
dc.contributor.author |
von Hagen, Juergen |
en |
dc.coverage.spatial |
Denver |
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dc.date.accessioned |
2020-01-12T22:35:13Z |
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dc.date.issued |
2011-01-08 |
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dc.identifier.uri |
http://hdl.handle.net/2292/49558 |
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dc.description.abstract |
We develop a tractable multi-country overlapping-generations model and show that cross-country differences in financial development explain three recent empirical patterns of international capital flows. Domestic financial frictions in our model distort interest rates and aggregate output in the less financially developed countries. International capital flows help ameliorate the two distortions. International flows of financial capital and foreign direct investment affect aggregate output in each country directly through affecting the size of aggregate investment. In addition, they affect aggregate output indirectly through affecting the composition of aggregate investment and the size of aggregate savings. Under certain conditions, the indirect effects may dominate the direct effects so that, despite “uphill” net capital flows, full capital mobility may raise the steady-state aggregate output in the poor country as well as raise world output. However, if foreign direct investment is restricted, \uphill" financial capital flows strictly reduce the steady-state aggregate output in the poor countries and it is more likely that the steady-state world output is lower than under international financial autarky. |
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dc.relation.ispartof |
2011 North American Winter Meeting of the Econometric Society |
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dc.rights |
Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. |
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dc.rights.uri |
https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm |
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dc.title |
International Capital Flows and Aggregate Output |
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dc.type |
Conference Item |
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dc.rights.holder |
Copyright: The author |
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pubs.author-url |
https://www.econometricsociety.org/meetings/schedule/2011/01/07/north-american-winter-meeting |
en |
pubs.finish-date |
2011-01-09 |
en |
pubs.start-date |
2011-01-07 |
en |
dc.rights.accessrights |
http://purl.org/eprint/accessRights/RestrictedAccess |
en |
pubs.subtype |
Conference Paper |
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pubs.elements-id |
786863 |
en |
pubs.org-id |
Business and Economics |
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pubs.org-id |
Economics |
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pubs.record-created-at-source-date |
2019-11-26 |
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