Publication: Country Portfolios
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Published
2004-04
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Date
2013-06-19
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Abstract
Capital flows to developing countries are small and take mostly the form of loans rather than direct foreign investment. We build a simple model of North-South capital flows that highlights the interplay between diminishing returns, production risk and sovereign risk. This model generates a set of country portfolios and a world distribution of capital stocks that resemble those in the data.
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“Loayza, Norman; Kraay, Aart; Ventura, Jaume; Servén, Luis. 2004. Country Portfolios. Policy Research working paper series;no.
WPS 3320; Policy Research Working Paper;No.3320. © World Bank. http://hdl.handle.net/10986/14013 License: CC BY 3.0 IGO.”
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