The global financial resource curse
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- dc.contributor.author Benigno, Gianluca
- dc.contributor.author Fornaro, Luca
- dc.contributor.author Wolf, Martin
- dc.date.accessioned 2021-09-16T10:03:42Z
- dc.date.available 2021-09-16T10:03:42Z
- dc.date.issued 2024-08
- dc.description.abstract August 2024 Since the late 1990s, the United States has received large capital flows from developing countries - a phenomenon known as the global saving glut - and experienced a productivity growth slowdown. Motivated by these facts, we provide a model connecting international financial integration and global productivity growth. The key feature is that the tradable sector is the engine of growth of the economy. Capital flows from eveloping countries to the United States boost demand for U.S. non-tradable goods, inducing a reallocation of U.S. economic activity from the tradable sector to the non-tradable one. In turn, lower profits in the tradable sector lead firms to cut back investment in innovation. Since innovation in the United States determines the evolution of the world technological frontier, the result is a drop in global productivity growth. This effect, which we dub the global financial resource curse, can help explain why the global saving glut has been accompanied by subdued investment and growth, in spite of low global interest rates.en
- dc.format.mimetype application/pdf*
- dc.identifier.uri http://hdl.handle.net/10230/48467
- dc.language eng
- dc.language.iso engca
- dc.rights.accessRights info:eu-repo/semantics/openAccessca
- dc.subject.keyword Global saving gluten
- dc.subject.keyword Global productivity growthen
- dc.subject.keyword International financial integrationen
- dc.subject.keyword Capital flowsen
- dc.subject.keyword U.S. productivity growth slowdownen
- dc.subject.keyword Low global interest ratesen
- dc.subject.keyword Bretton Woods IIen
- dc.subject.keyword Export-led growthen
- dc.title The global financial resource curseca
- dc.type info:eu-repo/semantics/workingPaperca