This paper explores the impact of the emergence of China and India on Foreign Capital Stocks (FCS) in other economies. Using bilateral FCS data from 1990-2003 and drawing from the knowledge-capital model of the multinational enterprises to control of fundamental determinants of FCS across countries, the evidence suggests that the impact of foreign capital in China and India on other countries' FCS has been positive. This finding is robust to the use...
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2006/07/20
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Substitution between foreign capital in China, India, the rest of the World, and Latin America : much ado about nothing?
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board of governors of the federal reserve system
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