Capital Mobility
The Impact on Consumption, Investment and Growth

This edited volume examines capital mobility in both industrialised and developing countries.

Leonardo Leiderman (Edited by), Assaf Razin (Edited by)

9780521142731, Cambridge University Press

Paperback, published 8 April 2010

380 pages
22.9 x 15.2 x 2.1 cm, 0.55 kg

"...the articles are of value in illuminating the techniques being used in these areas and because most of the authors develop their analytical models." Journal of Economic Literature

The industrialised world has witnessed a dramatic increase in the volume of international capital movements in the forms of borrowing and lending, bond transactions and foreign direct investment. At the same time, many non-OECD countries have embarked on extensive programmes of capital market liberalisation. This volume examines the implications of this increased international capital mobility for both industrialised and developing countries. The contributors look at the effect of developments on economic fluctuations, and on fiscal and monetary policies under alternative exchange rate regimes. They also address the erosion of capital taxation as a source of government revenue, the contribution of mobile capital to development with 'endogenous growth', the role of mobile capital in reducing unemployment where there are large-scale population flows, and the convergence of national growth rates.

Preface
Foreword
1. Introduction Leonardo Leiderman and Assaf Razin
Part I. Macroeconomic Policy: 2. Are industrial-country consumption risks globally diversified? Mauric Obstfeld
Discussion Benjamin Bental
3. Business-cycle volatility and openness: an exploratory cross-sectional analysis Assaf Razin and Andrew K. Rose
Discussion Enrique G. Mendoza and Vittorio Grilli
4. The robustness of macroeconomic indicators of capital mobility Enrique G. Mendoza
Discussion Joseph Zeira
Part II. Exchange Rate Volatility: 5. An interpretation of recent research on exchange rate target zones Lars E. O. Svensson
Discussion Shmuel Kandel and Andrew K. Rose
6. Some evidence on a strategic model of exchange rate bands Alex Cukierman, Miguel A. Kiguel and Leonardo Leiderman
Discussion Lars E. O. Svensson and Giuseppe Bertola
7. Exchange rate volatility, uncertainty and investment: an empirical investigation John Huizinga
Discussion Rafi Melnick
Part III. Investment and Growth: 8. Foreign finance and economics growth: and empirical analysis Daniel Cohen
Discussion Elhanan Helpman
9. Convergence in growth rates: a quantitative assessment of the role of capital mobility and international taxation Assaf Razin and Chi-Wa Yuen
Discussion Oren Sussman
10. Will government policy magnify capital flow volatility? Giuseppe Bertola and Allan Drazen
Discussions Gian Maria Milesi-Ferretti and Nathan Sussman
Part IV. Policy Perspectives: 11. The political economy of capital controls Alberto Alesina, Vittorio Grilli and Gian Maria Milesi-Ferretti
Discussion Roni Schachar and Marco Pagano
12. Capital controls and capital account liberalisation in industrial countries Donald J. Mathieson and Liliana Rojas-Suarez
Discussion Eran Yashiv.

Subject Areas: Macroeconomics [KCB]