Foreign Capital in Developing
Economies
The object of this volume is
to evaluate the pattern and the function of foreign capital in developing countries in a
long-run perspective. The main conceptual instruments employed are the theory of economic
growth, and the techniques associated with recent advances in growth econometrics. This
empirical work points out that there is no mechanical trade-off between the short-term
dangers and the long-run gains from capital market integration, but the growth benefits of
foreign capital in transforming economies are conditional on an effective destination of
the resources. Over-borrowing and excessive consumption are the main pitfalls in the
short- as in the long-run. Nevertheless, foreign capital can be conducive to faster growth
and possibly higher welfare.
Contents:
Foreword; E.R.Grilli
Acknowledgements
List of Tables
Introduction: A Growth-theory
Approach to Capital Flows in Developing Countries
Recovery, Insolvency and
Stagnation: Foreign Capital to Developing Economies in Historical Perspective
PART I: THEORETICAL MODELS
Growth Theory and the
Determinants of Capital Flows
Growth Theory and the Effects
of Capital Flows
PART II: EMPIRICAL STUDIES
Measuring Capital Mobility in
Developing Economies
Determinants of Net Capital
Flows in Developing Countries
Capital Movements, Economic
Growth and Investment in Developing Countries
External Finance and Foreign
Debt in the Transition Economies of Central Eastern Europe
Bibliography
Index
Author Biographies:
STEFANO MANZOCCHI is
Associate Professor of Economics, University of Perugia. He has been a Visiting Scholar,
Research Department, International Monetary Fund, Washington, DC, 1996; a consultant for
the European Union and for the Research Centre on the Italian and European Economy. He has
published on capital flows and external finance in a range of major economic journals.
224 pages
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