01805cas a2200265 a 4500 AALejournalIMF006783 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455209354 1018-5941 BD-DhAAL BD-DhAAL Ricci, Luca. International Capital Flows and Development : Financial Openness Matters / Luca Ricci, Thierry Tressel, Dennis B. S. Reinhardt. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (44 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Does capital flow from rich to poor countries? We revisit the Lucas paradox and explore the role of capital account restrictions in shaping capital flows at various stages of economic development. We find that, when accounting for the degree of capital account openness, the prediction of the neoclassical theory is confirmed: less developed countries tend to experience net capital inflows and more developed countries tend to experience net capital outflows, conditional of various countries' characteristics. The findings are driven by foreign direct investment, portfolio equity investment, and to some extent by loans to the private sector. Mode of access: Internet Reinhardt, Dennis B. S. Tressel, Thierry. IMF Working Papers; Working Paper ; No. 2010/235 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/235/001.2010.issue-235-en.xml IMF e-Library