Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
962330 | Journal of International Economics | 2013 | 16 Pages |
Abstract
⺠We perform a capital flow accounting exercise using the neoclassical growth model. ⺠The standard model is slightly extended to account for investment risk. ⺠This extension explains the positive correlation between capital outflows and growth. ⺠The capital wedge (distortions on the return to capital) is key to obtain this result. ⺠Global imbalances can be explained by the relatively low capital wedge in Asia.
Related Topics
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Economics and Econometrics
Authors
Kenza Benhima,