Why the ‘Rest’ doesn’t need foreign finance
The Rest will be able to catch up and grow faster than the West only if it goes against a 'received truth', namely that capital-rich countries should transfer their capital to capital-poor countries. This intuitive truth is the mantra that the West cites to justify its occupation of the ma...
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2016 |
| País: | Brasil |
| Institución: | Fundação Getulio Vargas (FGV) |
| Repositorio: | Repositório Institucional do FGV (FGV Repositório Digital) |
| Idioma: | inglés |
| OAI Identifier: | oai:repositorio.fgv.br:10438/15552 |
| Acceso en línea: | http://hdl.handle.net/10438/15552 |
| Access Level: | acceso abierto |
| Palabra clave: | Foreign savings Domestic savings Dutch disease Foreign finance Developmentalism Economia Poupança Financiamento |
| Sumario: | The Rest will be able to catch up and grow faster than the West only if it goes against a 'received truth', namely that capital-rich countries should transfer their capital to capital-poor countries. This intuitive truth is the mantra that the West cites to justify its occupation of the markets of developing countries with its finance and its multinationals. Classical Developmentalism successfully criticized the unequal exchange involved in trade liberalization, but it didn’t succeed in criticizing foreign finance. This task has been recently achieved by New Developmentalism and its developmental macroeconomics, which shows that countries will invest and grow more if they don’t run current account deficits, even when these deficits are financed by foreign direct investment |
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