Labour institutions and vulnerability of developing economies under capital inflows

Figures & data

Table 1. Patterns of optimal paths depending on generating control (V) and initial state (S₀).

	0 < V < V11	V11 < V < V12	V12 < V < V^ν	V > V^ν
Y0 > νVK0	Proportional decline	Proportional growth	Proportional decline	Lack of investment and decline
Y0 < νVK0	Lack of investment, then proportional decline	Lack of investment, then proportional growth	Lack of investment, then proportional decline	Lack of investment and decline

Source: The author’s calculation.

Figure 1. Dynamics of the economic growth factor (α) depending on the inflow growth factor (ɛ): the case of criterion A (maximisation of the current output). Source: the author’s calculation.

Figure 2. Dynamics of the economic growth factor (α) depending on the inflow growth factor (ɛ): the case of criterion C (maximisation of the sustainable growth factor). Source: the author’s calculation.

Figure 3. Dynamics of the economic growth factor (α) depending on the growth factor of the inflow (ɛ): the case of criterion C (maximisation of the sustainable growth factor). Source: the author’s calculation.