Capital flows in an aging world

Zsofia Barany (), Nicolas Coeurdacier and Stéphane Guibaud

Journal of International Economics, 2023, vol. 140, issue C

Abstract: We investigate the importance of worldwide demographic evolutions in shaping capital flows across countries. Our lifecycle model incorporates cross-country differences in fertility and longevity as well as differences in countries' ability to borrow inter-temporally and across generations through social security. In this environment, global aging triggers uphill capital flows from emerging to advanced economies, while country-specific demographic evolutions reallocate capital towards countries aging more slowly. Our quantitative multi-country overlapping generations model explains a large fraction of long-term capital flows across advanced and emerging countries.

Keywords: Aging; Household saving; International capital flows (search for similar items in EconPapers)
JEL-codes: E21 F21 J11 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Capital Flows in an Aging World (2023)
Working Paper: Capital Flows in an Aging World (2023)
Working Paper: Capital Flows in an Aging World (2018)
Working Paper: Capital Flows in an Aging World (2018)
Working Paper: Capital Flows in an Aging World (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:140:y:2023:i:c:s0022199622001398

DOI: 10.1016/j.jinteco.2022.103707

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