Literature notes many factors as affecting capital flows, but the effects of these flows over the recipient economies and the overall effect over growth are highly debatable. This study claims that although capital flows may be required for the increase in output, other forces are causing this...

One of the most important elements of financial markets' globalization is capital account liberalization. Joining the international financial markets can bring both benefits and costs to the given country. Having removed obstacles to the free flow of capital countries expect a more dynamic...

This paper studies, how allowing foreign capital flows in a developing economy will impact the inter-sector dynamics in terms of allocation of factors of production, relative output and real exchange rate. This paper introduces foreign capital flows to the theory of structural change and...

We analyze the quantitative impact of the non-tradable sector and structural change on international capital flows. We argue that the allocation puzzle (Gourinchas and Jeanne (2013)) reflects the difference in the magnitudes rather than the direction of net capital flows predicted by the one...

This paper examines the ability of the endogenous growth and medium frequency cycle model of Holden (2016) to explain global imbalances and the puzzles of open economy macroeconomics. The model features complete international financial markets, and intrinsically multi-national R&D, yet is still...

This study investigates the effects of various foreign capital flows, including repatriated profits on economic growth. I attempt to prove the hypothesis that developing countries tend to face slow economic growth because of their consistent encounters with more outbound capital flows in the...

This article critically evaluates the argument that, if developing countries had better institutions and policies and deeper financial markets, they would receive a boost to growth from capital account liberalization. The existing empirical record is ambiguous and leaves unanswered many of the...

Pakistan economy has received large inflows of foreign capital, in shape of foreign debt, FDI and worker's remittances, over the years. The present study is focused on the examination of effects of these flows on economic growth in Pakistan. Johansen cointegration technique and Granger causality...

This paper is motivated by a set of cross-country observations on economic growth, structural transformation, and investment rates in a large sample of countries, We observe a hump-shaped relationship between a country’s investment rate and its level of development, both within countries over...