Capital flows may not alleviate poverty, perpetuating inequality in developing economies.
The article explores how factors like technology and capital affect income inequality and economic growth. The researchers use a model to show that without passing down wealth, long-term growth is not possible. They also find that in a growing economy, inequality within generations can persist indefinitely. Additionally, they show that in open economies, capital may not always flow from rich to poor countries, and this can hinder efforts to reduce poverty.