Ride the Wild Surf : An Investigation of the Drivers of Surges in Capital Inflows

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Calderón, César
dc.contributor.author
Kubota, Megumi
dc.date.accessioned
2014-02-03T20:47:35Z
dc.date.available
2014-02-03T20:47:35Z
dc.date.issued
2014-01
dc.date.lastModified
2017-12-14T04:32:22Z
dc.description.abstract
Over the past 15 years, gross inflows to industrial and developing countries have enjoyed a wild ride. After reaching record highs in the run-up to the global financial crisis, they collapsed dramatically in 2008-09. As signs of global recovery reappeared, capital inflows resumed although at different speeds. The recovery in flows was faster and sharper in developing countries. This paper aims at understanding the (domestic and external) drivers of these surges in gross inflows using quarterly data for 67 countries from 1975 to 2010. It finds that domestic and external factors have significant explanatory power in driving surges of inflows. This finding holds for the sample of industrial countries whereas domestic factors play a significantly larger role in explaining surges to developing countries. Zooming into the findings shows that: (a) financial booms tend to attract massive capital inflows, (b) surges to either industrial or developing countries are driven by regional contagion, and (c) strong growth and natural resource abundance are keys to attract inflows of foreign capital into developing countries.
en
dc.identifier
http://documents.worldbank.org/curated/en/2014/01/18834369/ride-wild-surf-investigation-drivers-surges-capital-inflows
dc.identifier.uri
http://hdl.handle.net/10986/16824
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 6753
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ACCOUNTING
dc.subject
ADVANCED COUNTRIES
dc.subject
ADVANCED ECONOMIES
dc.subject
ASSET POSITION
dc.subject
ASSET PRICE
dc.subject
ASSET PRICES
dc.subject
ASYMMETRIC INFORMATION
dc.subject
BALANCE OF PAYMENTS
dc.subject
BALANCE SHEETS
dc.subject
BANK POLICY
dc.subject
BANKING CRISES
dc.subject
BANKING CRISIS
dc.subject
BOND
dc.subject
BOND FUNDS
dc.subject
BONDS
dc.subject
BOOM-BUST CYCLES
dc.subject
BROKERS
dc.subject
CAPITAL ACCOUNT
dc.subject
CAPITAL FLOW
dc.subject
CAPITAL FLOWS
dc.subject
CAPITAL INFLOW
dc.subject
CAPITAL INFLOWS
dc.subject
CAPITAL MOBILITY
dc.subject
CAPITAL MOVEMENTS
dc.subject
CENTRAL BANK
dc.subject
CENTRAL BANKS
dc.subject
COMMODITY
dc.subject
COMMODITY PRICES
dc.subject
CONSUMER PRICE INDEX
dc.subject
COUNTRY RISK
dc.subject
CREDIT EXPANSION
dc.subject
CREDIT EXPANSIONS
dc.subject
CREDIT GROWTH
dc.subject
CREDIT MARKETS
dc.subject
CREDITWORTHINESS
dc.subject
CURRENCY
dc.subject
CURRENCY CRISIS
dc.subject
CURRENT ACCOUNT BALANCE
dc.subject
CURRENT ACCOUNT BALANCES
dc.subject
CURRENT ACCOUNT DEFICIT
dc.subject
CURRENT ACCOUNT DEFICITS
dc.subject
CURRENT ACCOUNT SURPLUSES
dc.subject
DEBT
dc.subject
DEBT CRISIS
dc.subject
DEBT FLOWS
dc.subject
DEBT RELIEF
dc.subject
DEBT SECURITIES
dc.subject
DEVALUATION
dc.subject
DEVELOPING COUNTRIES
dc.subject
DEVELOPING COUNTRY
dc.subject
DEVELOPING ECONOMIES
dc.subject
DEVELOPMENT BANK
dc.subject
DOMESTIC CREDIT
dc.subject
DOMESTIC CURRENCIES
dc.subject
DOMESTIC CURRENCY
dc.subject
DOMESTIC ECONOMY
dc.subject
DOMESTIC FINANCIAL MARKETS
dc.subject
DOMESTIC INVESTORS
dc.subject
DOMESTIC MARKETS
dc.subject
DUMMY VARIABLE
dc.subject
EMERGING ECONOMIES
dc.subject
EMERGING ECONOMY
dc.subject
EMERGING MARKET
dc.subject
EMERGING MARKET ECONOMIES
dc.subject
EMERGING MARKETS
dc.subject
EQUITY FLOWS
dc.subject
EQUITY FUNDS
dc.subject
EQUITY SECURITIES
dc.subject
EXCESS LIQUIDITY
dc.subject
EXCHANGE RATE
dc.subject
EXCHANGE RATE REGIME
dc.subject
EXCHANGE RATES
dc.subject
EXPORTERS
dc.subject
EXTERNAL FINANCE
dc.subject
EXTERNAL FINANCING
dc.subject
FEDERAL RESERVE
dc.subject
FEDERAL RESERVE BANK
dc.subject
FINANCIAL ASSET
dc.subject
FINANCIAL CONTAGION
dc.subject
FINANCIAL CRISES
dc.subject
FINANCIAL CRISIS
dc.subject
FINANCIAL DEVELOPMENTS
dc.subject
FINANCIAL FACTORS
dc.subject
FINANCIAL FLOWS
dc.subject
FINANCIAL INFLOWS
dc.subject
FINANCIAL INSTABILITY
dc.subject
FINANCIAL INSTITUTION
dc.subject
FINANCIAL INSTITUTIONS
dc.subject
FINANCIAL MARKETS
dc.subject
FINANCIAL OPENNESS
dc.subject
FINANCIAL REFORM
dc.subject
FINANCIAL SECTOR
dc.subject
FINANCIAL STABILITY
dc.subject
FINANCIAL SUPPORT
dc.subject
FINANCIAL SYSTEM
dc.subject
FINANCIAL SYSTEMS
dc.subject
FINANCIAL TRANSACTIONS
dc.subject
FISCAL POLICIES
dc.subject
FLEXIBLE EXCHANGE RATE
dc.subject
FLEXIBLE EXCHANGE RATE REGIMES
dc.subject
FLOATING RATES
dc.subject
FLOW OF CAPITAL
dc.subject
FLOW OF FUNDS
dc.subject
FOREIGN ASSET
dc.subject
FOREIGN ASSET POSITION
dc.subject
FOREIGN ASSETS
dc.subject
FOREIGN CAPITAL
dc.subject
FOREIGN DEBT
dc.subject
FOREIGN DIRECT INVESTMENT
dc.subject
FOREIGN FINANCING
dc.subject
FOREIGN INTEREST
dc.subject
FOREIGN INVESTMENT
dc.subject
FOREIGN INVESTORS
dc.subject
GLOBAL CAPITAL
dc.subject
GLOBAL CAPITAL FLOWS
dc.subject
GLOBAL ECONOMY
dc.subject
GLOBAL MARKETS
dc.subject
GLOBAL RISK
dc.subject
GLOBAL STOCK MARKETS
dc.subject
GLOBALIZATION
dc.subject
GOVERNMENT POLICIES
dc.subject
GROWTH RATE
dc.subject
HUMAN RESOURCE
dc.subject
IMPLIED VOLATILITY
dc.subject
INCOME
dc.subject
INCOME DIFFERENTIALS
dc.subject
INDUSTRIAL COUNTRIES
dc.subject
INFLATION
dc.subject
INFLATION CRISIS
dc.subject
INFLATION RATE
dc.subject
INFLOWS OF CAPITAL
dc.subject
INTEREST RATE
dc.subject
INTERNATIONAL BANK
dc.subject
INTERNATIONAL CAPITAL
dc.subject
INTERNATIONAL CAPITAL FLOWS
dc.subject
INTERNATIONAL CAPITAL MARKET
dc.subject
INTERNATIONAL ECONOMICS
dc.subject
INTERNATIONAL FINANCIAL INTEGRATION
dc.subject
INTERNATIONAL FINANCIAL STATISTICS
dc.subject
INTERNATIONAL INTEREST
dc.subject
INTERNATIONAL TRADE
dc.subject
INVESTMENT FLOWS
dc.subject
INVESTMENT OPPORTUNITIES
dc.subject
LIABILITY
dc.subject
LIQUIDITY
dc.subject
LIQUIDITY PROBLEMS
dc.subject
LOAN
dc.subject
LOCAL CURRENCIES
dc.subject
LOCAL CURRENCY
dc.subject
LOCAL INVESTORS
dc.subject
MACROECONOMIC INSTABILITY
dc.subject
MACROECONOMIC POLICY
dc.subject
MARKET RETURN
dc.subject
MATURITY
dc.subject
MATURITY MISMATCHES
dc.subject
MICRO DATA
dc.subject
MIDDLE-INCOME COUNTRIES
dc.subject
MONETARY AUTHORITY
dc.subject
MONETARY POLICY
dc.subject
MONETARY STABILITY
dc.subject
MONEY MARKET
dc.subject
MONEY MARKET RATE
dc.subject
MUTUAL FUNDS
dc.subject
NATURAL RESOURCE
dc.subject
NATURAL RESOURCES
dc.subject
NEGATIVE SHOCK
dc.subject
NET CAPITAL
dc.subject
NET DEBT
dc.subject
OPEN ECONOMIES
dc.subject
OUTPUT
dc.subject
POLICY RESPONSES
dc.subject
PORTFOLIO
dc.subject
PORTFOLIO INFLOWS
dc.subject
PORTFOLIO INVESTMENT
dc.subject
PORTFOLIO RISK
dc.subject
PORTFOLIOS
dc.subject
POSITIVE COEFFICIENT
dc.subject
PRIVATE CAPITAL
dc.subject
PRIVATE CAPITAL INFLOWS
dc.subject
PROPERTY RIGHTS
dc.subject
PUSH FACTOR
dc.subject
PUSH FACTORS
dc.subject
RAPID EXPANSION
dc.subject
REAL ECONOMIC ACTIVITY
dc.subject
REAL EXCHANGE RATE
dc.subject
REAL EXCHANGE RATES
dc.subject
REAL INTEREST
dc.subject
REAL INTEREST RATE
dc.subject
REAL INTEREST RATES
dc.subject
REGULATORY FRAMEWORK
dc.subject
RESERVE
dc.subject
RETURN
dc.subject
RETURNS
dc.subject
RISK AVERSION
dc.subject
SHARE OF EQUITY
dc.subject
SHORT-TERM LIABILITIES
dc.subject
SOVEREIGN DEFAULT
dc.subject
SOVEREIGN RISK
dc.subject
STOCK MARKET
dc.subject
STOCK MARKET VOLATILITY
dc.subject
STOCK MARKETS
dc.subject
STOCK RETURN
dc.subject
STOCK RETURNS
dc.subject
SYSTEMIC RISKS
dc.subject
TAX
dc.subject
TAX CODE
dc.subject
TRADE BALANCE
dc.subject
TRADING
dc.subject
WORLD DEVELOPMENT INDICATORS
dc.subject
WORLD ECONOMY
dc.subject
WORLD FINANCIAL MARKETS
dc.subject
WORLD STOCK MARKETS
dc.title
Ride the Wild Surf : An Investigation of the Drivers of Surges in Capital Inflows
en
okr.date.disclosure
2014-01-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2014/01/18834369/ride-wild-surf-investigation-drivers-surges-capital-inflows
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Finance and Markets
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6753
okr.identifier.externaldocumentum
000158349_20140122151732
okr.identifier.internaldocumentum
18834369
okr.identifier.report
WPS6753
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/01/22/000158349_20140122151732/Rendered/PDF/WPS6753.pdf
en
okr.topic
Macroeconomics and Economic Growth :: Macroeconomic Management
okr.topic
Finance and Financial Sector Development :: Currencies and Exchange Rates
okr.topic
Economic Theory and Research
okr.topic
Private Sector Development :: Emerging Markets
okr.topic
Finance and Financial Sector Development :: Debt Markets
okr.unit
Office of the Chief Economist, Africa Region; Poverty and Economic Management Unit, Europe and Central Asia Region
okr.volume
1 of 1

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