Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/618 
Authors: 
Year of Publication: 
1992
Citation: 
[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1992
Series/Report no.: 
Kiel Working Paper No. 545
Publisher: 
Kiel Institute of World Economics (IfW), Kiel
Abstract: 
Despite large rate of return differentials implied by persistent income differentials, relatively little capital flows to poor countries. The rate of return differentials are substantially reduced, however, if different human capital endowments are taken into account, as is shown for a limited sample of countries. Additionally accounting for human capital externalities based on independent empirical evidence turns around the predicted rate of return differentials in favor of the rich countries. Hence, the world economy may converge to a rather unequal distribution of incomes as long as human capital accumulation is neglected as the key variable limiting economic development.
Document Type: 
Working Paper
Document Version: 
Digitized Version

Files in This Item:
File
Size
646.52 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.