Publication:
Sudden Stops : Are Global and Local Investors Alike?

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dc.contributor.authorCalderón, César
dc.contributor.authorKubota, Megumi
dc.date.accessioned2012-03-19T18:00:33Z
dc.date.available2012-03-19T18:00:33Z
dc.date.issued2011-02-01
dc.description.abstractThe main goal of this paper is to characterize the determinants of sudden stops caused by domestic vis-a-vis foreign residents. Are the decisions of domestic investors to invest abroad or of foreign investors to cut off funds from the domestic economy governed by the same set of determinants? Given the distribution of different types of sudden stop episodes over time and its different macroeconomic consequences, the authors argue that the determinants may not be alike. Using an effective sample of 82 countries with annual information over the period 1970-2007, the analysis finds that global investors are less likely to stop bringing their capital when their economy is growing and the world interest rate is lower. Domestic agents are more willing to invest abroad if the macroeconomic performance of the domestic economy is poor (high inflation), the financial system is weak, and there are high external savings (current account surpluses). Increasing financial openness makes the domestic country more vulnerable to sudden stops caused by either local or global investors. Finally, countries with higher shares of foreign direct investment are less prone to inflow-driven sudden stops, whereas the opposite holds for outflow-driven sudden stops.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110214154448
dc.identifier.doi10.1596/1813-9450-5569
dc.identifier.urihttps://hdl.handle.net/10986/3336
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5569
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVANCED COUNTRIES
dc.subjectBALANCE OF PAYMENTS
dc.subjectBANK ASSETS
dc.subjectBANK CREDIT
dc.subjectBANK DEPOSIT
dc.subjectBANK DEPOSITS
dc.subjectBANK POLICY
dc.subjectBANKING CRISES
dc.subjectBANKING CRISIS
dc.subjectBANKING SYSTEM
dc.subjectBOND MARKET
dc.subjectBOND MARKET CAPITALIZATION
dc.subjectBOND MARKETS
dc.subjectBONDS
dc.subjectBUDGET SURPLUS
dc.subjectBUSINESS CYCLES
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL ACCOUNT LIBERALIZATION
dc.subjectCAPITAL CONTROLS
dc.subjectCAPITAL FLIGHT
dc.subjectCAPITAL FLOW
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL GROWTH
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKET REFORM
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL OUTFLOWS
dc.subjectCAPITAL STOCK
dc.subjectCENTRAL BANK
dc.subjectCOMMUNICATION TECHNOLOGY
dc.subjectCONSUMER PRICE INDEX
dc.subjectCORPORATE GOVERNANCE
dc.subjectCREDIT CONSTRAINTS
dc.subjectCREDIT GROWTH
dc.subjectCURRENCY
dc.subjectCURRENCY CRISES
dc.subjectCURRENCY CRISIS
dc.subjectCURRENCY MISMATCHES
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT BALANCE
dc.subjectCURRENT ACCOUNT DEFICITS
dc.subjectCURRENT ACCOUNT SURPLUSES
dc.subjectDATA AVAILABILITY
dc.subjectDEBT
dc.subjectDEBT BURDEN
dc.subjectDEBT FINANCING
dc.subjectDEBT FLOWS
dc.subjectDEPOSIT
dc.subjectDERIVATIVES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDOMESTIC CREDIT
dc.subjectDOMESTIC CURRENCY
dc.subjectDOMESTIC ECONOMY
dc.subjectDOMESTIC FINANCIAL MARKETS
dc.subjectDOMESTIC INVESTORS
dc.subjectECONOMIC PERFORMANCE
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectEQUITY FLOWS
dc.subjectEQUITY MARKETS
dc.subjectEXCHANGE RATE REGIME
dc.subjectEXCHANGE RATE REGIMES
dc.subjectEXPORT BASE
dc.subjectEXPOSURE
dc.subjectEXTERNAL ASSETS
dc.subjectEXTERNAL FINANCE
dc.subjectEXTERNAL FINANCING
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFINANCIAL DERIVATIVES
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL FLOWS
dc.subjectFINANCIAL INFLOWS
dc.subjectFINANCIAL INFRASTRUCTURE
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL OPENNESS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SECTOR INDICATORS
dc.subjectFINANCIAL SECTORS
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL SHOCKS
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectFLEXIBLE EXCHANGE RATE
dc.subjectFLOWS OF CAPITAL
dc.subjectFOREIGN ASSETS
dc.subjectFOREIGN BANK
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN EQUITIES
dc.subjectFOREIGN FINANCING
dc.subjectFOREIGN INTEREST
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN PORTFOLIO
dc.subjectFOREIGN PORTFOLIO INVESTMENT
dc.subjectGLOBAL CAPITAL
dc.subjectGLOBAL CAPITAL FLOWS
dc.subjectGLOBAL ECONOMY
dc.subjectGLOBAL INVESTORS
dc.subjectGLOBALIZATION
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT EXPENDITURE
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHIGH INFLATION
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINDEBTED COUNTRIES
dc.subjectINDUSTRIAL COUNTRIES
dc.subjectINFLATION
dc.subjectINFLATION RATE
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINFRASTRUCTURE PROJECTS
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BORROWING
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINTERNATIONAL CREDIT
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL ECONOMIES
dc.subjectINTERNATIONAL FINANCIAL INTEGRATION
dc.subjectINTERNATIONAL FINANCIAL MARKETS
dc.subjectINTERNATIONAL FINANCIAL STATISTICS
dc.subjectINTERNATIONAL INVESTMENTS
dc.subjectINTERNATIONAL MARKETS
dc.subjectINTERNATIONAL RESERVES
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT FLOWS
dc.subjectLIABILITY
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDITY
dc.subjectLOCAL CAPITAL MARKETS
dc.subjectLOCAL FINANCIAL MARKETS
dc.subjectLOCAL INVESTORS
dc.subjectMACROECONOMIC MISMANAGEMENT
dc.subjectMACROECONOMIC PERFORMANCE
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC POLICY
dc.subjectMACROECONOMIC STABILITY
dc.subjectMACROECONOMIC VULNERABILITY
dc.subjectMICRO DATA
dc.subjectMIDDLE-INCOME COUNTRIES
dc.subjectMONETARY FUND
dc.subjectMONETARY POLICY
dc.subjectMONETARY STABILITY
dc.subjectMONEY MARKET
dc.subjectMONEY MARKET RATE
dc.subjectNATURAL RESOURCE
dc.subjectNATURAL RESOURCES
dc.subjectNET CAPITAL
dc.subjectNET DEBT
dc.subjectNON-PERFORMING LOANS
dc.subjectOUTPUT
dc.subjectPOLICY RESPONSES
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO INFLOWS
dc.subjectPORTFOLIO INVESTMENT
dc.subjectPORTFOLIOS
dc.subjectPOSITIVE COEFFICIENT
dc.subjectPRICE STABILITY
dc.subjectPRIVATE BOND
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE CAPITAL INFLOWS
dc.subjectPRIVATE CREDIT
dc.subjectPRIVATE SECTOR FINANCE
dc.subjectPUSH FACTORS
dc.subjectRATE OF GROWTH
dc.subjectREAL ECONOMIC ACTIVITY
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL EXCHANGE RATES
dc.subjectREAL INTEREST
dc.subjectREAL INTEREST RATE
dc.subjectREGULATORY CAPITAL
dc.subjectREGULATORY FRAMEWORKS
dc.subjectRESERVE
dc.subjectRESERVE ACCUMULATION
dc.subjectRESERVES
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISK AVERSION
dc.subjectSAVINGS
dc.subjectSECURITIES
dc.subjectSMALL COUNTRIES
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKET CAPITALIZATION
dc.subjectSTOCKS
dc.subjectT-BILLS
dc.subjectTAX
dc.subjectTAX SYSTEMS
dc.subjectTRADE BALANCE
dc.subjectTRADING
dc.subjectTREASURY
dc.subjectTREASURY BILLS
dc.subjectVOLATILITY
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.subjectWORLD INTEREST RATE
dc.subjectWORLD MARKET
dc.titleSudden Stops : Are Global and Local Investors Alike?en
dspace.entity.typePublication
okr.crossref.titleSudden stops: Are global and local investors alike?
okr.date.disclosure2011-02-01
okr.date.doiregistration2025-04-10T11:33:21.120597Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110214154448
okr.guid904121468325166299
okr.identifier.doi10.1596/1813-9450-5569
okr.identifier.externaldocumentum000158349_20110214154448
okr.identifier.internaldocumentum13777117
okr.identifier.reportWPS5569
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/02/14/000158349_20110214154448/Rendered/PDF/WPS5569.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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