An Analysis of Reverse Capital Flow among Rich and Poor Countries (A Critical Review of R.E.Lucas's Paper)

oleh: Rahim Dallali Isfahani, Sohrab Delangizan

Format: Article
Diterbitkan: پژوهشگاه حوزه و دانشگاه 2004-09-01

Deskripsi

This study is a critical review of locus's paper (١٩٩٠) on internationalcapital mobility. The key question that he addresses is:" Why doescapital not flow from rich to poor countries?" The author deals withthe subject by critically reviewing Lucas's work, and his choice ofmodel and analytical objective, and tries to investigate crudely thenecessary issues which were either neglected or did not receive dueattention, such as: reverse human capital, inconsistent rules andregulations, and high investment risks in poor countries.Finally, in addition to the concluded remarks, primary suggestionsare made with respect to reduction of political risk, development andapplication of proper rules to prevent money laundering and financialcorruption…