Explain why this mechanism-free movement of capital

Reference no: EM133355426

Question: According to neoclassical theory of trade, the free movement of capital between advances countries (ACs) and lagging countries (LCs) will produce convergence in the PCI of ACs and LCs.

Explain why this mechanism-free movement of capital between countries-did not produce convergence between ACs and LCs?

Reference no: EM133355426

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