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Kirabaeva, Koralai - 2010

We survey several mechanisms that explain the composition of international capital flows: foreign direct investment, foreign portfolio investment and debt flows (bank loans and bonds). We focus on information frictions such as adverse selection and moral hazard, and exposure to liquidity shocks,...

Persistent link: https://www.econbiz.de/10012462165

Foreign Capital and Economic Growth

Prasad, Eswar S. - 2007

We document the recent phenomenon of "uphill" flows of capital from nonindustrial to industrial countries and analyze whether this pattern of capital flows has hurt growth in nonindustrial economies that export capital. Surprisingly, we find that there is a positive correlation between current...

Persistent link: https://www.econbiz.de/10012465020

Negative Alchemy? Corruption, Composition of Capital Flows, and Currency Crises

Wei, Shang-Jin - 2001

Crony capitalism and self-fulfilling expectations by international creditors are often suggested as two rival explanations for currency crisis. This paper examines a possible linkage between the two that has not been explored much in the literature: corruption may affect a country's composition...

Persistent link: https://www.econbiz.de/10012470539

India's Experience with Capital Flows : The Elusive Quest for a Sustainable Current Account Deficit

Shah, Ajay - 2005

From the early 1990s onwards, India has engaged in policies involving trade liberalisation, strong controls on debt flows, and encouragement for portfolio flows and FDI, under a pegged exchange rate regime. Domestic institutional factors have led to relatively little FDI and substantial...

Persistent link: https://www.econbiz.de/10012467296

Foreign Capital in Latin America in the Nineteenth and Twentieth Centuries

Taylor, Alan M. - 2003

This paper examines the history of foreign investment in Latin America in the two centuries since independence. Investment flows to the region were sometimes large and always volatile. Symptoms of overborrowing, sudden stops, debt, default and crises have been evident from the beginning. In...

Persistent link: https://www.econbiz.de/10012469119

Capital flows : Catalyst or Hindrance to economic takeoffs?

Aizenman, Joshua - 2011

This paper applies a probit estimation to assess the relationship between economic takeoffs during 1950-2000 and inflows of portfolio debt, portfolio equity, and FDI, controlling for country's stock of short-term external debt and commodity terms of trade. Average level of FDI inflows is...

Persistent link: https://www.econbiz.de/10012461399

Capital Controls, Capital Flow Contractions, and Macroeconomic Vulnerability

Edwards, Sebastian - 2007

In this paper I analyze whether restrictions to capital mobility reduce vulnerability to external shocks. More specifically, I ask if countries that restrict the free flow of international capital have a lower probability of experiencing a large contraction in net capital flows. I use three new...

Persistent link: https://www.econbiz.de/10012465804

FDI Contribution to Capital Flows and Investment in Capacity

Razin, Assaf - 2002

The paper surveys a theory of FDI, which captures a unique feature: hands-on management standards, that enable …, with large rates of returns), than the domestic investors. The theory can explain both two-way FDI flows among developed … informational value of FDI. The predictions of the theory are consistent with evidence from panel data: larger FDI coefficients in …

Persistent link: https://www.econbiz.de/10012469505

Capital Flows in Asia

Ito, Takatoshi - 1999

This paper characterizes the capital flows in Asia before and after the Asian currency crisis of 1997. Differences in foreign direct investment, portfolio investment, and bank lending are emphasized. There are common factors and idiosyncratic factors to the role of capital flows in the currency...

Persistent link: https://www.econbiz.de/10012471660

Globalization and the Increasing Correlation between Capital Inflows and Outflows

Davis, J. Scott - 2017

We document that the correlation between capital inflows and outflows has increased substantially over time in a sample of 128 advanced and developing countries. We provide evidence that this is a result of an increase in financial globalization (stock of external assets and liabilities). This...

Persistent link: https://www.econbiz.de/10012455011