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### Abstract

Analyse: The long run behaviour of capital flows in the less developed countries (LCD's) is analyzed, focusing on the mobility of capital, the determinants of net foreign borrowing and the impact of capital flows in the LCD's
The empirical results point out that capital is not immobile in the developing countries, although we may not conclude that perfect financial integration holds, the determinants of net capital flows in the LCD's are consistent with recent models of economic growth, particulary with hypothesis of "conditional" convergence of the LCD's to their steady-state equilibrium
As long as the impact of capital flows is concerned, a theoretical model is provided wich shows that, under some plausible assumptions, the effects of foreign borrowing could depend on some structural features of the economy, namely the degree of coordination achieved by economic agents