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.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2024-11-14T10:09:31Z
- dc.date.available 2024-11-14T10:09:31Z
- dc.date.issued 2019-12-01
- dc.date.modified 2024-11-14T10:08:17Z
- dc.description.abstract 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 developing 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
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1803
- dc.identifier.citation
- dc.identifier.uri http://hdl.handle.net/10230/68544
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1803
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword global saving glut
- dc.subject.keyword global productivity growth
- dc.subject.keyword international financial integration
- dc.subject.keyword capital flows
- dc.subject.keyword u.s. productivity growth slowdown
- dc.subject.keyword low global interest rates
- dc.subject.keyword bretton woods ii
- dc.subject.keyword export-led growth
- dc.subject.keyword Macroeconomics and International Economics
- dc.title The global financial resource curse
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper