TY  - JOUR
AU  - Prasad,Eswar S.
AU  - Rajan,Raghuram
TI  - A Pragmatic Approach to Capital Account Liberalization
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14051
PY  - 2008
Y2  - June 2008
UR  - http://www.nber.org/papers/w14051
L1  - http://www.nber.org/papers/w14051.pdf
N1  - Author contact info:
Eswar S. Prasad
Dyson School of Applied Economics and
Management
Cornell University
440 Warren Hall
Ithaca, NY 14853
Tel: 607/255-5687
Fax: 607/255-9984
E-Mail: eswar.prasad@cornell.edu

Raghuram Rajan
Booth School of Business
University of Chicago
5807 South Woodlawn Avenue
Chicago, IL 60637
Tel: 773/702-4437
Fax: 773/702-0458
E-Mail: raghuram.rajan@ChicagoBooth.edu
AB  - Cross-country regressions suggest little connection from foreign capital inflows to more rapid economic growth for developing countries and emerging markets. This suggests that the lack of domestic savings is not the primary constraint on growth in these economies, as implicitly assumed in the benchmark neoclassical framework. We explore emerging new theories on both the costs and benefits of capital account liberalization, and suggest how one might adopt a pragmatic approach to the process.
ER  -