BARONE SERGIO VICTOR
Congresos y reuniones científicas
Título:
Capital flows to developing countries and terms-of-trade shocks
Lugar:
Valencia y Villareal
Reunión:
Seminario; ARNOLDSHAIN SEMINAR XII. GLOBALIZATION, DEVELOPMENT AND HUMAN CAPITAL. THE ROLE OF NETWORKING AND INFORMATION; 2014
Institución organizadora:
Universidad de Valencia
Resumen:
This paper studies the relationship between FDI in ows and terms-of-trade shocks. We examine the existing literature related to the \Lucas Paradox", and analyze theoretically how a terms-of-trade shock would impact on less developed economies. We apply a xed e ects generalized least square regression framework to regress FDI in ows on terms-of-trade shock alongside other control variables. We nd that for the group of \developing" economies the estimated coecient of shocks to TOT are lower than that estimated for the group of \advanced" economies. Then, less developed economies do not take advantage of positive global cycles because they are investment-constrained economies.