Why Doesn't Capital Flow from Rich to Poor Countries?

Compartir en:

Belton, Padraig

(0 Comentarios)
Comenta y valora este libro

Disponible entre 11 y 20 dias

ISBN:9781912128433
Editorial: Macat
Fecha de la edición:2017
Encuadernación:
Nº Pág.:108
Idiomas:Ingles

Materias:

/ Planificación y Desarrollo

Robert Lucas is known among economists as one of the most influential macroeconomists of recent times - a reputation founded in no small part on the critical thinking skills displayed in his seminal 1990 paper 'Why Doesnt Capital Flow from Rich to Poor Countries?

Lucass paper tackles a puzzle in economic theory that has since come to be known as the 'Lucas paradox, and it deploys the authors brilliant problem solving skills to explain why such an apparent paradox in fact makes sense. Classical economic theory makes a simple prediction of how capital flows between countries: it should, it states, flow from rich to poor countries, because of the law of diminishing returns on capital. Since poor countries have so little capital invested in them, the returns on new investment should be proportionally far better than investment in rich countries.

This should mean that investors seeking new opportunities will invest in poorer countries, making capital consistently flow from rich nations to poorer ones. But, problematically, this is not in fact the case. Having defined the problem, Lucas did what any good problem solver would: he looked critically at the criteria involved, and offered a series of possible solutions. Indeed, in just six pages, he puts forward four hypotheses to explain the paradoxs existence. The popularity of his paper, and the influence it has had, are also greatly magnified by careful reasoning embodied in Lucass marshalling of evidence and his explanations of the judgements he has made.

Ways in to the text Who was Pádraig Belton? What does Why Doesn't Capital Flow from Rich to Poor Countries? say? Why does Why Doesn't Capital Flow from Rich to Poor Countries? matter? Section 1: Influences Module 1: The Author and the Historical Context Module 2: Academic Context Module 3: The Problem Module 4: The Author's Contribution Section 2: Ideas Module 5: Main Ideas Module 6: Secondary Ideas Module 7: Achievement Module 8: Place in the Author's Work Section 3: Impact Module 9: The First Responses Module 10: The Evolving Debate Module 11: Impact and Influence Today Module 12: Where Next? Glossary of Terms People Mentioned in the Text Works Cited