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measures of the volatility of FDI inflows. As introduced into the model, these are predicted to have a negative effect on … results are not entirely robust, there is a consistent finding that FDI has a positive effect on growth whereas volatility of …). There is a suggestion that it is not the volatility of FDI per se that retards growth but that such volatility captures the …
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Developing countries are constrained in financing current account deficits as real capital mobility is still far from perfect. At the same time, capital flows to these countries proved to be extremely volatile. The paper argues that the long-term problem of "too little" should not be confused...
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