A tale of two 'globalizations': capital flows from rich to poor in two eras of global finance

Moritz Schularick ()

International Journal of Finance & Economics, 2006, vol. 11, issue 4, pages 339-354

Abstract: In this paper we take a comparative look at the patterns of capital flows from rich to poor countries in two eras of financial globalization. The paper extends recent research on the developmental effects of international financial integration, long-term trends in capital mobility and 'globalization in historical perspective'. Analysing the patterns of international financial integration in the three decades of the classical gold standard and after 1990 we show that investment in developing countries was a central element of 19th century financial globalization, but plays only a minor role today. The Lucas paradox of capital failing to flow from rich to poor has grown much stronger. In historical perspective, today's financial globalization is marked by massive diversification flows between high-income economies and a relative marginalization of less-developed economies. Copyright © 2006 John Wiley & Sons, Ltd.

Date: 2006
View list of references View citations in EconPapers

Downloads: (external link)
http://hdl.handle.net/10.1002/ijfe.302 Link to full text; subscription required (text/html)

Related works:
Working Paper: A TALE OF TWO “GLOBALIZATIONS”: CAPITAL FLOWS FROM RICH TO POOR IN TWO ERAS OF GLOBAL FINANCE (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ijf:ijfiec:v:11:y:2006:i:4:p:339-354

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Series data maintained by Christopher F. Baum ().