Why capital (physical and human) doesn't move from rich to poor countries

Philippe Darreau (1) , François Pigalle (1)

1 LAPE - Laboratoire d'Analyse et de Prospective Economique

Capital (physical and human) doesn't flow from rich to poor countries. We show that in order to solve these twin paradoxes, assumption of externality of physical capital is better than assumption of externality of human capital.

Mots clés: economic growth; physical capital; human capital; total factor productivity

Domaines: Sciences de l'Homme et Société; Economies et finances

Philippe Darreau, François Pigalle. Why capital (physical and human) doesn't move from rich to poor countries. Economics Bulletin, 2012, 32 (2), pp.1353-1360. ⟨hal-00785589⟩