Where Did Capital Flow? Fifty Years of International Rate of Return Di¤erentials and Capital Flows
نویسندگان
چکیده
World capital ows are substantial. Since 2000, gross world capital ows have averaged about 25 percent of world GDP per year, while net capital ows have been in excess of 4 percent of world GDP. Figure 1 shows these net ows as a fraction of world gross domestic product (GDP) over this period. Robert Lucas (1990) presumed that poor countries would have higher marginal products of capital (MPKs) than rich countries, and thus asked why capital doesnt ow from the rich to the poor. There We thank David Lagakos and Paulina Restrepo for research assistance above and beyond the call of duty.
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