Bad Investments and Missed Opportunities? Postwar Capital Flows to Asia and Latin America
| Autor: | Paulina Restrepo-Echavarria, Mark L. J. Wright, Lee E. Ohanian |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Economics and Econometrics
Economic capital 05 social sciences International economics Fixed capital Capital formation Capital accumulation Capital outflow Financial capital Capital deepening Capital (economics) 0502 economics and business Economics 050207 economics Economic system 050205 econometrics |
| Zdroj: | American Economic Review. 108:3541-3582 |
| ISSN: | 0002-8282 |
| Popis: | Since 1950, the economies of East Asia grew rapidly but received little inter-national capital, while Latin America received considerable international capitaleven as their economies stagnated. The literature typically explains the failureof capital to flow to high growth regions as resulting from international capitalmarket imperfections. This paper proposes a broader thesis that country-specificdistortions, such as domestic labor and capital market distortions, also impactcapital flows. We develop a DSGE model of Asia, Latin America, and the Rest ofthe World that features an open-economy business cycle accounting framework tomeasure these domestic and international distortions, and to quantify their con-tributions to international capital flows. We find that domestic distortions havebeen the predominant drivers of international capital flows, and that the generalequilibrium effects of these distortions are very large. International capital market distortions also matter, but less. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|