Financial Development and International Capital Flows

We develop a general equilibrium model with nancial frictions in which internal capital (equity capital) and external capital (bank loans) have di erent rates of return. Financial development raises the rate of return on external capital but has a non-monotonic e ect on the rate of return on interna...

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Bibliographic Details
Main Authors: von Hagen, Jürgen, ZHANG, Haiping
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2007
Subjects:
Online Access:https://ink.library.smu.edu.sg/soe_research/1025
https://ink.library.smu.edu.sg/context/soe_research/article/2024/viewcontent/FinDevCapFlow.pdf
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Institution: Singapore Management University
Language: English