The Composition of Capital Flows; Is South Africa Different?

Over the past decade, South Africa has attracted relatively little foreign direct investment (FDI), but considerable amounts of portfolio inflows. In this context, the objective of the paper is twofold: to identify the determinants of the level and composition of capital flows to emerging markets and to draw policy conclusions for South Africa. We estimate a dynamic panel for up to 81 emerging markets using GMM (Generalized Method of Moments) techniques. The results suggest that further trade and capital control liberalization would increase the share of FDI. Additionally, a reduction in exchange rate volatility would affect the composition of capital flows in favor of FDI.

MoreLess

Year of publication:	2005-03-01
Authors:	Funke, Norbert ; Ahmed, Faisal ; Arezki, Rabah
Institutions:	International Monetary Fund (IMF)
Subject:	Exchange rates \| Foreign investment \| fdi \| capital flows \| capital inflows \| direct investment \| foreign direct investment \| equity flows \| capital controls \| portfolio investment \| determinants of capital flows \| foreign investors \| equity inflows \| capital account restrictions \| stock market \| capital movements \| composition of capital inflows \| portfolio investments \| domestic credit \| stock market capitalization \| private capital flows \| capital flow \| private capital \| host country \| industrial countries \| capital account liberalization \| investment decisions \| external capital \| foreign exchange \| capital structure \| foreign assets \| international capital flows \| foreign enterprise \| private capital inflows \| capital income taxation \| capital needs \| international capital \| international investment \| market asset \| market size \| macroeconomic stability \| market access \| ratio of imports \| capital control \| domestic bonds \| bond transactions \| real effective exchange rate \| short-term capital \| equity flow \| host countries

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series IMF Working Papers Number 05/40 2 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005826511