International Capital Flows and World Output Gains

• Main Authors: von Hagen, Jurgen, ZHANG, Haiping
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2010
• 主題: Capital account liberalization; financial frictions; financial development; foreign direct investment; world output gains; International Economics
• 在線閱讀: https://ink.library.smu.edu.sg/soe_research/1143; https://ink.library.smu.edu.sg/context/soe_research/article/2142/viewcontent/Zhang_ICF.pdf

We develop a two-country overlapping-generations model with domestic financial frictions and show that cross-country differences in financial development explain three recent patterns of international capital flows. In our model, domestic financial frictions distort the interest rates and production...