Abstract

CASARES, Enrique R.. Flujos de capital externo y crecimiento económico múltiple. Econ: teor. práct [online]. 2010, n.32, pp.13-31. ISSN 2448-7481.

We develop an endogenous growth model with two sectors, tradable (manufacturing) and non-tradable (non-manufacturing). Technological knowledge is only produced in the tradable sector. The non-tradable sector can use this knowledge. We study how the economy responds to an increase in capital mobility. We show that the inflow of foreign capital produces an appreciation of the real exchange rate. Thus, the tradable sector (leader in technological knowledge) is damaged by the capital inflow. However, given that there are increasing returns to scale, the economy growth rate can decrease or increase, with possibility of multiple equilibrium, in the long run.

Keywords : tradable sector; learning; capital mobility; real exchange rate; growth.