This paper provides a new theory of international capital ows. In a frameworkthat integrates factor … laborforce/technology shock|a ow \reversal". One implication is that rich countries' currentaccount deficits may be a consequence …

productivity shocks across countries, competing with the standard, `resource allocationeffect'. Moreover, a countryspecic … technology shock can induce reallocation of re-sources both across industries and countries. These reallocations alter the …

response to a temporary income shock, thechange in the current account is equal to the change in saving times the ratio of … netforeign assets to wealth. We analyze the impact of a temporary income shock onthe current account in the context of a two …

Does FDI affect productivity growth, innovation, and knowledge sourcing activities ofdomestic firms? This study employs … local incumbents’ TFP and labour productivitygrowth in the short term. The effect on productivity does not depend on the … local firms’distance to the productivity frontier. However, there are positive spillovers on processinnovation. The results …

evidence on the link of productivity and both exports and foreign directinvestment (fdi) in services firms from a highly … thatthe productivity pecking order found in numerous studies using data for firms frommanufacturing industries – where the … firms with the highest productivity engage in fdi whilethe least productive firms serve the home market only and the …