Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2010-01-13
Number: 10-003/2
Author-Name: Corine Franken
Author-Workplace-Name: University of Amsterdam
Author-Name: Sweder van Wijnbergen
Author-Workplace-Name: University of Amsterdam, the Netherlands
Title: Private Capital Flows to Low Income Countries: Country-Specific Effects and the Lucas Paradox
Abstract: This paper analyses Net Private Capital Flows to LICs incorporating the recent surge in FDI between 2000 and 2006. We show that including country-specific effects in a paneldata setup resolves the Lucas Paradox, at least for LICs. Our results suggest that openness is among the most important factors explaining country-specific performance in attracting Net Private Capital Flows.
Classification-JEL: F21, G15
Keywords: Private capital inflows, Low Income Countries, Lucas Paradox
File-Url: https://papers.tinbergen.nl/10003.pdf
File-Format: application/pdf
File-Size: 252656 bytes
Handle: RePEc:tin:wpaper:20100003