@article{Cavallo:294134,
      recid = {294134},
      author = {Cavallo, Eduardo and Eichengreen, Barry J. and Panizza,  Ugo},
      title = {Can countries rely on foreign saving for investment and  economic development?},
      publisher = {The Graduate Institute},
      address = {Geneva. 2016},
      number = {BOOK},
      series = {Graduate Institute of International and Development  Studies Working Paper ; no. 07/2016},
      pages = {53 p.},
      year = {2016},
      abstract = {A surprisingly large number of countries have been able to  finance a significant fraction of domestic investment using  foreign finance for extended periods. While many of these  episodes are in low-income countries where official finance  is more important than private finance, we also identify a  number of episodes where a substantial fraction of domestic  investment was financed via private capital inflows. That  said, we find that foreign savings are not a good  substitute for domestic savings. More often than not,  episodes of large and persistent current account deficits  do not end happily. Rather, they end abruptly with  compression of the current account, real exchange rate  depreciation, and a sharp slowdown in investment. We  conclude that financing growth and investment out of  foreign savings, while not impossible, is risky.},
      url = {http://repository.graduateinstitute.ch/record/294134},
      doi = {https://doi.org/10.71609/iheid-bt28-y284},
}