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Observed international investment positions and cross-country heterogeneity in rates of return to capital are hard to reconcile with frictionless capital markets. In this paper, we develop a theory of international capital allocation: a multi-country dynamic spatial general equilibrium model in...
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We quantify the impact of barriers to international investment, using a novel multi-country dynamic general equilibrium model with heterogeneous investors and imperfect capital mobility. Our model yields a gravity equation for bilateral foreign asset positions. We estimate this gravity equation...
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We empirically characterize how China is internationalizing the Renminbi by selectively opening up its domestic bond … market and propose a dynamic reputation model to understand China's internationalization strategy. While previously closed to … foreign investors, China has recently allowed major increases in foreign investment in its domestic bond market. China …
Persistent link: https://www.econbiz.de/10013295962
We quantify the impact of barriers to international investment, using a novel multi-country dynamic general equilibrium model with heterogeneous investors and imperfect capital mobility. Our model yields a gravity equation for bilateral foreign asset positions. We estimate this gravity equation...
Persistent link: https://www.econbiz.de/10012514947
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