Capital account flows, consumption ratios and the middle-income trap

Robert Alexander, Shanghai Lixin University of Commerce Daping Zhao and Sajid Anwar

No 10380, EcoMod2017 from EcoMod

Abstract: Using a sample of 31 OECD countries and 17 middle-income countries over the period 1950-2013, we carry out an empirical investigation of the relationship amongst domestic consumption, capital account flows and the growth rate of GDP. The main findings are that there is an inverted U-shaped relationship between the consumption ratio and economic growth, while capital outflow is positively associated with economic growth but capital inflow is associated with slower growth. These results hold in the full sample of countries, in the high-income group, the middle-income group and in a group that we define as middle-income trapped. An extreme bounds analysis indicates that the results are, for the most part, robust to the inclusion of a range of variables that have been found to be associated with growth in the literature. See full paper attached. See results in full paper attached.

Keywords: Various; Developing countries; Macroeconometric modeling (search for similar items in EconPapers)
JEL-codes: E21 F21 O47 (search for similar items in EconPapers)
Date: 2017-07-04
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ecomod.net/system/files/MITRAP_ECOM.docx

Related works:
Journal Article: Capital account flows, consumption ratios and the middle‐income trap (2019)
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: https://EconPapers.repec.org/RePEc:ekd:010027:10380

Access Statistics for this paper

More papers in EcoMod2017 from EcoMod Contact information at EDIRC.
Bibliographic data for series maintained by Theresa Leary ().