Why does capital flow from poor to rich countries?

Why does capital flow from poor to rich countries? This column argues that the direction of capital flows makes economic sense given savings behaviour. But the real puzzle is why savings rates are high in poor countries and low in rich ones.

Read full article at
http://ccraprogram.wordpress.com/2013/10/04/why-does-capital-flow-from-poor-to-rich-countries/

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