The role of population and wealth in international capital flows
Abstract
Purpose
Seeks to analyze the role of population and wealth in determining capital movements between countries.
Design/methodology/approach
By applying the Clark‐Jokung 50 percent portfolio theorem, considers the specific case of a two country world where the cumulative conditional expected outcome on the asset in one country is greater than or equal to that in the other country.
Findings
Specifically, lower population and wealth ratios (poor/rich) increase net capital flows to the poor country.
Originality/value
So far most of the literature on cross‐border capital flows has generally neglected the role of population and underestimated the role of wealth. This study addresses the gaps left by these deficiencies.
Keywords
Citation
Clark, E. and Jokung, O. (2006), "The role of population and wealth in international capital flows", Studies in Economics and Finance, Vol. 23 No. 1, pp. 4-12. https://doi.org/10.1108/10867370610661918
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited