The DOI matches its Crossref record; 5 of the 5 references it cites were found in a registry or an index.
Why Doesn't Capital Flow from Rich to Poor Countries? An Empirical Investigation
Abstract
We examine the empirical role of different explanations for the lack of capital flows from rich to poor countries—the “Lucas Paradox.” The theoretical explanations include cross-country differences in fundamentals affecting productivity, and capital market imperfections. We show that during 1970–2000, low institutional quality is the leading explanation. Improving Peru's institutional quality to Australia's level implies a quadrupling of foreign investment. Recent studies emphasize the role of institutions for achieving higher levels of income but remain silent on the specific mechanisms. Our results indicate that foreign investment might be a channel through which institutions affect long-run development.
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Cites
La Porta, R., Lopez‐de‐Silanes, F., Shleifer, A., & Vishny, R. W. (1998) · Journal of Political Economy · doi:10.1086/250042 · Cited by 18,025
Legal Determinants of External Finance
LA PORTA, R., LOPEZ‐DE‐SILANES, F., SHLEIFER, A., & VISHNY, R. W. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb02727.x · Cited by 9,783
The colonial origins of comparative development: An empirical investigation
Acemoglu, D., Johnson, S., & Robinson, J. A. (2001) · American Economic Review · doi:10.1257/aer.91.5.1369 · Cited by 8,517
The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988
Summers, R., & Heston, A. (1991) · The Quarterly Journal of Economics · doi:10.2307/2937941 · Cited by 3,429
The great reversals: the politics of financial development in the twentieth century
Rajan, R. G., & Zingales, L. (2003) · Journal of Financial Economics · doi:10.1016/s0304-405x(03)00125-9 · Cited by 3,327
Cited by
Policy uncertainty, irreversibility, and cross-border flows of capital
Julio, B., & Yook, Y. (2016) · Journal of International Economics · doi:10.1016/j.jinteco.2016.08.004 · Cited by 473
Regulatory Arbitrage and International Bank Flows
HOUSTON, J. F., LIN, C., & MA, Y. (2012) · The Journal of Finance · doi:10.1111/j.1540-6261.2012.01774.x · Cited by 367
How China lends: a rare look into 100 debt contracts with foreign governments
Gelpern, A., Horn, S., Morris, S., Parks, B., & Trebesch, C. (2024) · Economic Policy · doi:10.1093/epolic/eiac054 · Cited by 322
FDI, Productivity and Financial Development
Alfaro, L., Kalemli‐Ozcan, S., & Sayek, S. (2009) · The World Economy · doi:10.1111/j.1467-9701.2009.01159.x · Cited by 320
Self-citationXie, E., Reddy, K. S., & Liang, J. (2017) · Journal of World Business · doi:10.1016/j.jwb.2016.12.005 · Cited by 312
Metadata
- Authors
- Alfaro, L., Kalemli-Ozcan, S., & Volosovych, V.
- Venue
- Review of Economics and Statistics
- Publisher
- MIT Press - Journals
- Published
- 2008-05
- Volume
- 90
- Issue
- 2
- Pages
- 347-368
- ISSN
- 0034-6535 (ISSN-L)
- 1530-9142
- OpenAlex
- W2132696046
- Cited by
- 1,013
- References
- 5
- FWCI
- 97.98
- Type
- journal article
- Language
- en
- Open access
- closed
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