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Using a panel regression approach across 13 developing Asian economies from 1996Q1 to 2019Q4, this paper examines the extent of financial development as a transmission channel for mediating the "allocation puzzle" in capital flows. This puzzle pertains to why capital seems to flow to economies...
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discussed in more detail. Implicitly, this lays the groundwork for a macroeconomic theory of development. The rough empirical …
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