A TALE OF TWO “GLOBALIZATIONS”: CAPITAL FLOWS FROM RICH TO POOR IN TWO ERAS OF GLOBAL FINANCE
Moritz Schularick ()
Economic History from EconWPA
In this paper we take a comparative look at capital flows to less- developed 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”. Analyzing 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.
Keywords: globalization; capital flows; development finance; capital market integration; economic history (search for similar items in EconPapers)
JEL-codes: F3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fmk and nep-his
Note: Type of Document - pdf; pages: 25
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Journal Article: A tale of two 'globalizations': capital flows from rich to poor in two eras of global finance (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpeh:0509001
Access Statistics for this paper
More papers in Economic History from EconWPA
Series data maintained by EconWPA ().