Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/11656

TitleFinancial globalization, convergence and growth
Author(s)Gomes Neto, Delfim
Veiga, Francisco José
KeywordsComposition of foreign capital
Speed of convergence
Growth
Issue date2008
PublisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
Citation“NIPE Working Paper”. 7 (2008) 1-32.
Abstract(s)We provide evidence that the composition of foreign capital, measured by the ratio foreign direct investment over total liabilities, a.ects growth directly and through the speed of convergence. Developing countries benefit relatively more as their initial GDP is smaller. The dataset comprises the period 1970-2004 and 96 countries, and the results are robust to di.erent measures of the composition of foreign capital, restricted time period, developing countries, and alternative explanations of convergence and growth. These results are consistent with the neoclassical growth model with credit constraints presented in this paper, in which the composition of foreign capital a.ects the transition dynamics through a positive e.ect on the speed of convergence and steady state GDP.
TypeWorking paper
DescriptionDocumento "Preliminary and Incomplete"
URIhttp://hdl.handle.net/1822/11656
Peer-Reviewedno
AccessOpen access
Appears in Collections:NIPE - Documentos de Trabalho

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