Journal Article

Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type?

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collection.link.125
https://openknowledge.worldbank.org/handle/10986/4401
collection.name.125
C. Journal articles published externally
dc.contributor.author
Eichengreen, Barry
dc.contributor.author
Gupta, Poonam
dc.contributor.author
Masetti, Oliver
dc.date.accessioned
2018-04-10T20:46:04Z
dc.date.available
2018-04-10T20:46:04Z
dc.date.issued
2018-02-22
dc.date.lastModified
2021-05-25T10:54:36Z
dc.description.abstract
According to conventional wisdom, capital flows are fickle. Focusing on emerging markets, we ask whether this conventional wisdom still holds in our contemporary world. Our results show that, despite recent structural and regulatory changes, much of it survives. Foreign direct investment (FDI) inflows are more stable than non-FDI inflows. Within non-FDI inflows, portfolio debt and bank-intermediated flows remain the most volatile. Whereas FDI inflows are driven mainly by pull factors, portfolio debt and equity are driven mainly by push factors; bank-intermediated flows are driven a combination of push and pull factors. Capital outflows from emerging markets behave differently, however. FDI outflows from emerging markets have grown and become significantly more volatile. There is similarly an increase in the volatility of bank-intermediated capital outflows from emerging markets. Our findings underscore that outflows from emerging markets, both FDI and bank-related flows, have come to play a growing role and warrant greater attention from analysts and policymakers.
en
dc.identifier.citation
Asian Economic Papers
dc.identifier.uri
http://hdl.handle.net/10986/29653
dc.publisher
The MIT Press
dc.rights
CC BY-NC-ND 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subject
CAPITAL FLOWS
dc.subject
FOREIGN DIRECT INVESTMENT
dc.subject
PORTFOLIO DEBT
dc.subject
EMERGING MARKET ECONOMIES
dc.title
Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type?
en
dc.type
Journal Article
en
okr.associatedcontent
https://www.mitpressjournals.org/doi/full/10.1162/asep_a_00583 Journal website (version of record)
en
okr.associatedcontent
https://openknowledge.worldbank.org/handle/10986/26140 Working paper version (pre-print)
en
okr.date.disclosure
2019-02-22
okr.doctype
Publications & Research :: Journal Article
okr.doctype
Publications & Research
okr.externalcontent
External Content
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1162/asep_a_00583
okr.identifier.doi
10.1596/29653
okr.identifier.report
126646
okr.journal.nbpages
22-41
okr.language.supported
en
okr.peerreview
Academic Peer Review
okr.topic
Finance and Financial Sector Development :: Capital Markets and Capital Flows
okr.topic
Finance and Financial Sector Development :: Debt Markets
okr.topic
International Economics and Trade :: Capital Flows
okr.topic
International Economics and Trade :: Foreign Direct Investment
okr.topic
Macroeconomics and Economic Growth :: Economic Theory & Research
okr.unit
GMTSA - South Asia
okr.volume
17(1)

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