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
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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
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Veröffentlichung
- (wer)
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ETH Zurich, CER-ETH - Center of Economic Research
- (wo)
-
Zurich
- (wann)
-
2021
- DOI
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doi:10.3929/ethz-b-000516401
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
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