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Applied Economics Letters Volume 8, 2001 - Issue 9
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Original Articles

Foreign capital in a neoclassical model of growth

Ying-Foon Chow Department of Finance, Chinese University of Hong Kong, Shatin, New Territories, Hong Kong and Department of Economics, National University of Singapore, Republic of Singapore 119260 E-mail: [email protected] and [email protected]
&
Jinli Zeng Department of Finance, Chinese University of Hong Kong, Shatin, New Territories, Hong Kong and Department of Economics, National University of Singapore, Republic of Singapore 119260 E-mail: [email protected] and [email protected]
Pages 613-615 | Published online: 06 Oct 2010
 
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Abstract

The impact of foreign capital inflows on the growth of developing countries remains controversial. Utilizing the neoclassical growth model, this paper shows that foreign capital inflows have a positive effect on the capital stock and consumption in the long run.

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