However, while this phenomenon has gained more attention over the past years, as Prasad et al. (2007) remark, this fact even seems to hold over a longer period. Over the whole period from 1970 to 2000, developing countries and emerging markets with more favourable and even positive current account positions (which implies net capital exports of these countries) have recorded higher per-capita GDP growth rates. In addition, the growth process of these capital-exporting countries has been rather capital intensive: Even though not all countries have recorded an investment to GDP ratio as high as in China, all of the fast.
