The textbook neoclassical growth model predicts that countries with faster productivity growth should invest more and …

largely reflect differences in countries' total factor productivity. We argue that this view has powerful implications for … patterns of capital flows: everything else equal, countries with faster productivity growth should invest more, and attract …

that is correlated with firm size/productivity and one that is essentially permanent to the firm. The paper reports a broad … set of moments describing firm-level investment dynamics and detailed parameter estimates on a country-by-country basis …