Investment returns are produced by combining financial assets with human capital, the decision-making protocols of … investment institutions, and the electronic infrastructure which supports the flow of information about investment opportunities … fundamental to the performance of investment institutions. This paper provides a model of the production of investment returns in …

productivity catch-up. Evidence shows that countries with higher productivity growth rates export capital while countries with … lower productivity growth rates receive positive capital inflows. This is contradictory to the predictions of the …, our calibrated Schumpeterian growth model also predicts a positive correlation between capital inflows and productivity …