Fernández-Arias, Eduardo; Hausmann, Ricardo - Inter-American Development Bank - 2000
It has been common to attribute financial crises to short-term capital inflows, while foreign direct investment (FDI …) is seen as a safer form of finance. The relationship between crises and the composition of capital flows is particularly … relevant at present because the flow of capital to Latin America is becoming increasingly dominated by FDI. This paper asks …