Growth and Capital Flows with Risky Entrepreneurship /

This paper shows that the behavior of entrepreneurs facing incomplete financial markets and risky investment can explain why growth accelerations in developing countries tend to be associated with current account improvements. The uninsurable risk of losing invested capital forces entrepreneurs to r...

Celý popis

Podrobná bibliografie
Hlavní autor: Sandri, Damiano
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2010.
Edice:IMF Working Papers; Working Paper ; No. 2010/037
On-line přístup:Full text available on IMF
LEADER 01722cas a2200241 a 4500
001 AALejournalIMF006290
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781451962802 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
100 1 |a Sandri, Damiano. 
245 1 0 |a Growth and Capital Flows with Risky Entrepreneurship /  |c Damiano Sandri. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2010. 
300 |a 1 online resource (27 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper shows that the behavior of entrepreneurs facing incomplete financial markets and risky investment can explain why growth accelerations in developing countries tend to be associated with current account improvements. The uninsurable risk of losing invested capital forces entrepreneurs to rely on self-financing, so that when business opportunities open up entrepreneurs increase saving to finance the investment that produces growth. The key insight is that saving has to rise more than investment to allow also for the accumulation of precautionary assets. Plausibly calibrated simulations show that this net saving increase can sustain large and persistent net capital outflows. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2010/037 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2010/037/001.2010.issue-037-en.xml  |z IMF e-Library