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in less than five years it more than doubled its debt to GDP level from 21% in 1995 to almost 50% by 2000. Due to the increased pressure the government decided to open its borders to foreign capital and in the 2000s a great deal of the incoming

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Foreign Capital and Imports on Economic Growth: Further Evidence from Four Asian Countries (1970–1998) . Journal of Asian Economics , 15 ( 2 ): 399 – 413 . 10.1016/j.asieco.2004.02.008 North , D. C. ( 1955 ): Location Theory and Regional Economic

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Stagnation rather than its Cause? Acta Oeconomica , 67 ( S ): 67 – 77 . 10.1556/032.2017.67.s.6 Prasad , E. S. – Rajan , R. G. – Subramanian , A. ( 2007 ): Foreign Capital and Economic Growth . NBER Working Paper , No. 13619 . PWT ( 2017

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excessive credit growth) may lead to an increase of foreign capital inflows, which via currency exchange appreciation may in turn increase the risk of foreign currency exposures. Prolonged expansive monetary policy induces the over-indebtedness of households

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) are sink-OFCs, which attract and retain foreign capital via low taxation and lenient regulation. Since my focus is also on the income distribution implications of public spending and tax decisions, I look at labour taxes for different types of earners

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in the 20th Century: The Ragnar Frish Centennial Symposium . Cambridge : Cambridge University Press , pp. 371 – 413 . Sohn , C.-H . ( 2002 ): Corporate Debt Resolution and the Role of Foreign Capital in the Post

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