Alfaro, Laura; Kalemli-Ozcan, Sebnem; Volosovych, Vadym - 2011
with productivity growth. This exercise reveals that international capital flows are mainly shaped by government decisions … and sovereign to sovereign transactions. Specifically, we show: (i) international capital flows net of government debt are … positively correlated with growth and allocated according to the neoclassical predictions; (ii) international capital flows net …