Year: 2006
Type: report
Abstract: Economists tend to favor the free �ow of capital across national borders,\nbecause it allows capital to seek out the highest rate of return. Unrestricted\ncapital �ows may also o¤er several advantages, as noted by Feldstein (2000).\nFirst, international �ows reduce the risk faced by owners of capital by al-\nlowing them to diversify their lending and investment. Second, the global\nintegration of capital markets can contribute to the spread of best practices\nin corporate governance, accounting standards, and legal traditions. Third,\nthe global mobility of capital limits the ability of governments to pursue bad\npolicies.\n1
Authors: Assaf Razin, Efraim Sadka
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1857911793