Arbeitspapier

Capital flows and endogenous growth

So-called "uphill capital flows", i.e. flows of physical capital from relatively poor to rich countries, are a new phenomenon with yet unclear impact. We develop a unified framework incorporating economic institutions, human capital and physical capital to study the interaction of international capital flows and growth. Analytically, we study conditions under which a positive change of a country's economic institutions can attract inflows of physical capital from abroad, leading to long-term growth via the accumulation of human capital. Our mechanism shows how a small initial difference in the level of institutions can lead to substantial divergence in income over time. We derive conditions under which a country receives inflows of capital over time and increases its investment in human capital. Finally, we provide simulations to illustrate our results.

Sprache
Englisch

Erschienen in
Series: Economics Working Paper Series ; No. 21/365

Klassifikation
Wirtschaft
Institutions and the Macroeconomy
International Investment; Long-term Capital Movements
Economic Growth of Open Economies
One, Two, and Multisector Growth Models
Institutions and Growth
Thema
Growth
International Capital Flows
Inequality
Institutions
Human Capital

Ereignis
Geistige Schöpfung
(wer)
Komarov, Evgenij
Ereignis
Veröffentlichung
(wer)
ETH Zurich, CER-ETH - Center of Economic Research
(wo)
Zurich
(wann)
2021

DOI
doi:10.3929/ethz-b-000516401
Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Komarov, Evgenij
  • ETH Zurich, CER-ETH - Center of Economic Research

Entstanden

  • 2021

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