Domestic Institutions and the Bypass Effect of Financial Globalization
建立模型研究国内制度如何影响国际资本流动模式，发现低效金融体系和差的公司治理会导致资本双向流动（储蓄外流但投资靠外资进入），并分析金融全球化对不同发展水平国家的福利影响。
This paper proposes a simple model to study how domestic institutions affect patterns of international capital flows. Inefficient financial system, and poor corporate governance, may be bypassed by two-way capital flows in which domestic savings leave the country in the form of financial capital outflows but domestic investment takes place via inward FDI. While financial globalization always improves the welfare of a developed country with a good financial system, its effect is ambiguous for a developing country with an inefficient financial sector or poor corporate governance. Interestingly, financial and property rights institutions can have opposite effects on capital flows.