Data and Code for: The Global Financial Resource Curse

Principal Investigator(s): View help for Principal Investigator(s) Gianluca Benigno, University of Lausanne; Luca Fornaro, CREI; Martin Wolf, University of St Gallen

Version: View help for Version V1

Name	File Type	Size	Last Modified
EWNdataset.xlsx	application/vnd.openxmlformats-officedocument.spreadsheetml.sheet	2.9 MB	09/29/2023 05:01:AM
Fig10_1.pdf	application/pdf	14 KB	10/21/2024 08:17:AM
Fig10_2.pdf	application/pdf	10.3 KB	10/21/2024 08:18:AM
Fig10_3.pdf	Unknown	9.8 KB	08/20/2024 07:21:AM
Fig11_1.pdf	application/pdf	13.8 KB	10/21/2024 08:18:AM
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Fig11_3.pdf	application/pdf	9.9 KB	10/21/2024 08:18:AM
Fig1_1.pdf	application/pdf	14.4 KB	06/17/2020 07:33:AM
Fig1_2.pdf	application/pdf	12.9 KB	10/21/2024 08:39:AM
Fig4_1.pdf	application/pdf	13.8 KB	10/21/2024 08:39:AM

Project Citation:

Benigno, Gianluca, Fornaro, Luca, and Wolf, Martin. Data and Code for: The Global Financial Resource Curse. Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-11-22. https://doi.org/10.3886/E208605V1

Project Description

Summary: Since the late 1990s, the United States has received large capital flows from developing countries - a phenomenon known as the global saving glut - and experienced a productivity growth slowdown. Motivated by these facts, we provide a model connecting international financial integration and global productivity growth. The key feature is that the tradable sector is the engine of growth of the economy. Capital flows from developing countries to the United States boost demand for U.S. non-tradable goods, inducing a reallocation of U.S. economic activity from the tradable sector to the non-tradable one. In turn, lower profits in the tradable sector lead firms to cut back investment in innovation. Since innovation in the United States determines the evolution of the world technological frontier, the result is a drop in global productivity growth. This effect, which we dub the global financial resource curse, can help explain why the global saving glut has been accompanied by subdued investment and growth, in spite of low global interest rates.

Funding Sources: ERC Starting Grant (851896); Severo Ochoa Programme for Centres of Excellence in R&D (SEV-2015-0563)

Scope of Project

Subject Terms: global saving glut; global productivity growth; international financial integration; capital flows; U.S. productivity growth slowdown; low global interest rates; Bretton Woods II; export-led growth

JEL Classification:
      E44 Financial Markets and the Macroeconomy
      F21 International Investment; Long-term Capital Movements
      F41 Open Economy Macroeconomics
      F43 Economic Growth of Open Economies
      F62 Economic Impacts of Globalization: Macroeconomic Impacts
      O24 Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy
      O31 Innovation and Invention: Processes and Incentives

Geographic Coverage: US, developing countries, global economy

Time Period(s): 1/1/1990 – 1/1/2024 (1990s until today)

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Published Versions

V1 [2024-11-22]

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DDI 2.5

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