The Lucas paradox revisited: a study on upstream capital flows and global imbalances

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en Chen, Xi 2015-11-04T13:21:05Z 2015-11-04T13:21:05Z 2015
dc.description.abstract We explore explanations for the reverse capital flows from developing countries to developed ones, namely the Lucas paradox. We find two main reasons. The first reason is from domestic financial factors which affect the direction of private international capital flows including foreign portfolios and direct investments. Our penal data analysis shows that, for the period of 1980-2011, the quality of economic institution and financial openness (both of which belong to the domestic financial factors) are explanations for the Lucas paradox. But the latter cannot completely explain the Lucas paradox. The second one is the export-driven growth strategy of some emerging markets. Those emerging markets undervalue their currencies by accumulating foreign exchange reserves, so that they can maintain trade surplus to drive economic growth, which leads to the reverse flows of public debts between governments. en
dc.format.extent 61
dc.language.iso en en
dc.title The Lucas paradox revisited: a study on upstream capital flows and global imbalances en
dc.type G2 Pro gradu, diplomityö fi Kauppakorkeakoulu fi School of Business en
dc.contributor.department Taloustieteen laitos fi
dc.contributor.department Department of Economics en
dc.subject.keyword Lucas paradox
dc.subject.keyword current account
dc.subject.keyword capital inflow
dc.subject.keyword economic institution
dc.subject.keyword reserve
dc.identifier.urn URN:NBN:fi:aalto-201511054881
dc.type.dcmitype text en
dc.programme.major Economics en
dc.programme.major Kansantaloustiede fi
dc.type.ontasot Master's thesis en
dc.type.ontasot Pro gradu tutkielma fi
dc.subject.helecon taloustieteet
dc.subject.helecon economic science
dc.subject.helecon rahalaitokset
dc.subject.helecon financial institutions
dc.subject.helecon pääoma
dc.subject.helecon capital
dc.subject.helecon pääomavirrat
dc.subject.helecon capital flow
dc.ethesisid 13984 2015-05-28
dc.location P1 I

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