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Recent evidence from developing and emerging economies shows a negative correlation between growth and net capital inflows, a contradiction to neoclassical growth theory. I provide updated and disaggregated evidence on the origins of this puzzle. An analysis of the components of capital flows...
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productivity growth - is observed for foreign direct investment (FDI) flows, which should be particularly sensitive to productivity …, construction, mining/petroleum/utilities, and tourism sector. By contrast, we show that countries with faster productivity growth … role for financial openness: a country with fast productivity growth draws in more FDI into its service sectors only when …
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