Trade and Capital Flows: A Financial Frictions Perspective
The classical Heckscher‐Ohlin‐Mundell paradigm states that trade and capital mobility are substitutes in the sense that trade integration reduces the incentives for capital to flow to capital‐scarce countries. In this paper we show that in a world with heterogeneous financial development, a very dif...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
| Published: |
University of Chicago Press
2011
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| Online Access: | http://hdl.handle.net/1721.1/61949 https://orcid.org/0000-0003-2760-451X |