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Capital deepening

About: Capital deepening is a research topic. Over the lifetime, 5203 publications have been published within this topic receiving 230297 citations.


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Journal ArticleDOI
TL;DR: The authors analyzes the effects of public capital on private sector variables in a vector auto-regressive framework and finds that while public capital is productive its effects on output are much lower than claimed in the previous literature.

115 citations

Journal ArticleDOI
TL;DR: This article developed a growth model where the allocation and productivity of capital depends on a country's institutions and found that increases in physical and human capital lead to output growth only in countries with good institutions.
Abstract: The international development community has encouraged investment in physical and human capital as a precursor to economic progress. Recent evidence shows, however, that increases in capital do not always lead to increases in output. We develop a growth model where the allocation and productivity of capital depends on a country's institutions. We find that increases in physical and human capital lead to output growth only in countries with good institutions. In countries with bad institutions, increases in capital lead to negative growth rates because additions to the capital stock tend to be employed in rent-seeking and other socially unproductive activities.

114 citations

Journal ArticleDOI
TL;DR: In this paper, the authors investigate the determinants of capital flight from 30 sub-Saharan African countries, including 24 countries classified as severely indebted low-income countries, for the period 1970-1996.
Abstract: We investigate the determinants of capital flight from 30 sub-Saharan African countries, including 24 countries classified as severely indebted low-income countries, for the period 1970-1996. The econometric analysis reveals that external borrowing is positively and significantly related to capital flight, suggesting that to a large extent capital flight is 'debt-fueled'. We estimate that for every dollar of external borrowing in the region, roughly 80 cents flowed back as capital flight in the same year. Capital flight also exhibits a high degree of persistence in the sense that past capital flight is correlated with current and future capital flight. The growth rate differential between the African country and its OECD trading partners is negatively related to capital flight. We also explore the effects of several other factors - inflation, fiscal policy indicators, the interest rate differential, exchange rate appreciation, financial development, and indicators of the political environment and governance. We discuss the implications of the results for debt relief and for policies aimed at preventing capital flight and attracting private capital held abroad.

114 citations

Journal ArticleDOI
TL;DR: In this paper, the theory of social security and life cycle savings and the steady state capital stock in a life cycle economy are discussed. But the authors focus on the partial equilibrium effect.
Abstract: I. The theory of social security and life cycle savings, 234.—II. Social security and the steady state capital stock in a life cycle economy, 237.—III. Partial equilibrium effect, 239.—IV. General equilibrium changes in capital intensity, 241.—V. Alternative specifications and some macro issues, 247.—VI. Summary and conclusion, 248.—Appendix A, 249.—Appendix B, 251.

114 citations

Posted Content
TL;DR: The authors show that the pattern of net capital flows across developing countries is not consistent with the consensus view that countries with faster productivity growth should invest more, and attract more foreign capital, and argue that this result constitutes an important challenge for economic research, and discuss some possible research avenues to solve the puzzle.
Abstract: According to the consensus view in growth and development economics, cross country differences in per-capita income largely reflect differences in countries' total factor productivity. We argue that this view has powerful implications for patterns of capital flows: everything else equal, countries with faster productivity growth should invest more, and attract more foreign capital. We then show that the pattern of net capital flows across developing countries is not consistent with this prediction. If anything, capital seems to flow more to countries that invest and grow less. We argue that this result - which we call the allocation puzzle - constitutes an important challenge for economic research, and discuss some possible research avenues to solve the puzzle.

114 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
202326
202242
202126
202031
201932
201848