Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77440
Authors: 
Reinhardt, Dennis
Ricci, Luca Antonio
Tressel, Thierry
Year of Publication: 
2012
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper 11/2012
Abstract: 
Does capital flow from rich to poor countries? We revisit the Lucas paradox and explore the role of capital account restrictions in shaping capital flows at various stages of economic development. We find that, when accounting for the degree of capital account openness, the prediction of the neoclassical theory is confirmed: less developed countries tend to experience net capital inflows and more developed countries tend to experience net capital outflows, conditional on various countries' characteristics.
Subjects: 
Lucas paradox
capital flows
financial openness
economic development
JEL: 
F21
F36
O4
Document Type: 
Working Paper

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