Long-Term International Capital Movements and Technology: A Review
IMF Working Papers, September 1, 1999
Source details
- Canonical URL
- Long-Term International Capital Movements and Technology: A Review
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Bibliographic details
- Authors: Harm Zebregs
- Published: September 1, 1999
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451854886.001
Summary
- Author: Harm Zebregs
- Date: September 1, 1999
- This paper reviews the theoretical literature on how long-term international capital movements depend on the international distribution of technology.
- Focus: long-term investment flows, which are more affected by international differences in technologies than short-term financial flows.
- Core conclusion: The theoretical specification of technology is crucial to the prediction of the size and direction of international capital movements.
Major themes and theoretical perspectives
- Technology specifications examined:
- Models with only one common technology.
- Models with multiple technologies.
- Models with endogenous technologies.
- Analytical focus:
- How different technology specifications alter predictions about international capital movements.
- The comparison between long-term investment flows and short-term financial flows in sensitivity to technology differences.
Key findings
- Long-term investment flows are more affected by international differences in technologies than short-term financial flows.
- The size and direction of international capital movements depend critically on the theoretical specification of technology used in models.
Subjects and keywords
- Subject: Capital flows, Income, Labor, Stocks, Technology
- Keywords: capital movement, factor price equalization, free trade, interest rate, open economy, perfect competition, WP
Content in this bundle
- Long-Term International Capital Movements and Technology: A Review -WP/99/126