Long-Term International Capital Movements and Technology: A Review

Long-Term International Capital Movements and Technology: A Review
ISBN-10
1451854889
ISBN-13
9781451854886
Category
Business & Economics
Pages
29
Language
English
Published
1999-09-01
Publisher
International Monetary Fund
Author
Mr.Harm Zebregs

Description

This paper reviews the theoretical literature on the question of how long-term international capital movements depend on the international distribution of technology. It focuses on long-term investment flows, as these are more affected by international differences in technologies than short-term financial flows. International capital movements are investigated in the context of various technology specifications, ranging from models with only one common technology to those with multiple and endogenous technologies. The paper demonstrates that the theoretical specification of technology is crucial to the prediction of the size and direction of international capital movements.

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