We live in a world where capital is free to move. Increasingly this determines the pattern of international growth. Savings are invested in the country yielding the highest return, thus adding to its stock of capital. This development is espe cially true of common markets such as the European Union, which are based on free trade and financial openness. The present monograph deals with internatio nal growth, featuring the dynamics of foreign debt and domestic capital. I had many helpful talks with my colleagues at Hamburg: Michael Schmid (now at Bamberg), Franco Reither, Wolf Schlifer, Thomas Straubhaar and Johannes Hackmann. In addition, Michael Brauninger and Philipp Lichtenauer carefully discussed with me all parts of the manuscript. Last but not least, Doris Ehrich did the secretarial work as excellently as ever. I wish to thank all of them. Contents INTRODUCTION 3 BRIEF SURVEY OF THE LITERATURE 9 SMALL OPEN ECONOMY 15 CHAPTER I. 1. Solow Model 15 1.1. Foreign Assets 15 1.1.1. Steady State 15 Process of Adjustment 25 1.1.2.

Inhalt
Brief Survey of the Literature.- I. Small Open Economy.- 1. Solow Model.- 2. Overlapping Generations.- 3. Infinite Horizon.- II. Two Countries.- 1. Different Saving Rates (Overlapping Generations).- 2. Different Saving Rates (Solow Model).- 3. Technical Progress Abroad (Solow Model).- 4. Different Rates of Labour Growth (Overlapping Generations).- III. Imperfect Capital Mobility.- 1. Solow Model (Fixed Debt Ratio).- 2. Overlapping Generations.- 3. Inifinite Horizon (Fixed Debt Ratio).- IV. Labour Mobility.- 1. Introducing Labour Mobility.- 2. Different Rates of Labour Growth.- V. Fixed Wage Rate.- 1. Closed Economy.- 2. Perfect Capital Mobility.- 3. Imperfect Capital Mobility.- 4. Land as Immobile Factor.- VI. Endogenous Growth.- 1. Closed Economy.- 2. Small Open Economy.- 3. Two Countries.- 4. Infinite Horizon.- Conclusion.- Result.- Symbols.- References.