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,...