This working paper was written by J. Scott Davis (Federal Reserve Bank of Dallas) and Eric Van Wincoop (University of Virginia and NBER).The correlation between capital inflows and outflows has increased substantially over time in a sample of 127 advanced and developing countries. We provide...

Acknowledgements -- Preface -- Introduction "post fata resurgo" : at the origins of modern finance -- Halcyon days -- Half measures -- The impact of oil -- Full measures -- Wuthering heights -- References

In this paper, we investigate how de facto financial globalization has influenced the labor share in developing countries. Our main argument is the need to distinguish between different types of capital in this context, as different forms of foreign investment have different fixed costs and...