Citation

Discussion Paper Details

Please find the details for DP1400 in an easy to copy and paste format below:

Full Details

Title: Are Capital Flows Consistent with the Neoclassical Growth Model? Evidence from a Cross-section of Developing Countries

Author(s): Stefano Manzocchi and Philippe Martin

Publication Date: May 1996

Keyword(s): Capital Movements, Developing Countries and Growth Theory

Programme Area(s): International Macroeconomics

Abstract: We identify the determinants of capital movements in an ?augmented-Solow? model where capital mobility is restricted to a subset of capital assets. We then test the prediction of the neoclassical model and find that it is consistent with the evidence on net capital flows in a cross-section of developing countries over the period 1960?82. We find that this is no longer true after 1982, however: the episodes of foreign debt repudiation and the world financial crisis of the early 1980s are the most natural candidates for an explanation of this pattern.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1400

Bibliographic Reference

Manzocchi, S and Martin, P. 1996. 'Are Capital Flows Consistent with the Neoclassical Growth Model? Evidence from a Cross-section of Developing Countries'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1400