Kraay, AartLoayza, NormanServén, LuisVentura, JaumeUniversitat Pompeu Fabra. Departament d'Economia i Empresa2017-07-262017-07-262000-10-01Journal of the European Economic Association, 3 (4), 914-945, 2005http://hdl.handle.net/10230/312Capital flows to developing countries are small and are mostly take the form of loans rather than direct foreign investment. We build a simple model of North-South capital flows that highlights the interplay between diminishing returns, production risk and sovereign risk. This model generates a set of country portfolios and a world distribution of capital stocks that resemble those in the data.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commonsinfo:eu-repo/semantics/workingPaperinternationall capital flowscountry portfoliossovereign riskMacroeconomics and International Economicsinfo:eu-repo/semantics/openAccess