He, Jia; Rui, Oliver M.; Zha, Xiaolei - East Asian Bureau of Economic Research (EABER) - 2011
Standard neoclassical theory predicts that capital should flow from rich to poor countries. However, Lucas (1990) points out that these capital flows are actually very modest, and nowhere near the levels predicted by theory. The People’s Republic of China (PRC) now receives more foreign...
