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Prospects Weekly: Private capital flows to low-income countries have proven more resilient than in middle income countries

Global Macroeconomics Team's picture
Private capital flows to low-income countries have proven more resilient than in middle income countries in the wake of the recent financial crisis, on account of their high dependence on relatively stable FDI flows. FDI flows to low-income countries were supported by increased South-South FDI and resource-related investment in developing countries.

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