Where does Capital Flow? A Comparison of U.S. States and EU Countries 1950-2000

Sebnem Kalemli-Ozcan, Bent Sorensen and Belgi Turan ()

No 295, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: We find that the United States in the 1950s and 1960s was characterized by strong "catch-up growth" in the south with capital owing from rich northern states to poorer southern states - consistent with the predictions of the simple neoclassical model. After the 1970s, "catch-up growth" is mainly over in the United States and capital is owing to productive (rich) states. For Europe, we find that capital has been owing from the richer countries to the poorer countries since the 1970s with no signs yet of the "catch-up" phase having run its course, except for the country of Ireland.

Keywords: european capital markets; regional capital flows; institutions; regulations; Kalemli-Ozcan; Sorensen; Turan (search for similar items in EconPapers)
Pages: 31 pages
Date: 2007-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0295

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