Do Capital Flows Reflect Economic Fundamentals in Developing Countries?

Do Capital Flows Reflect Economic Fundamentals in Developing Countries?
This paper proposes a methodology for testing whether capital flows to developing countries are determined by economic fundamentals or by purely speculative forces. We use the intertemporal optimizing approach to current account determination as our benchmark for judging the behavior of capital flows. According to this approach, capital flows... READ MORE...

Publication date: April 1993
ISBN 9781451978827
$15.00

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