Hausmann, Ricardo; Fernández-Arias, Eduardo - Inter-American Development Bank - 2000
This paper studies the proposition that capital inflows tend to take the form of FDI -i.e., the share of FDI in total … financial markets, the share of FDI in total flows is not an indication of good health. On the contrary, countries that are … FDI. Hence, interpreting the rising share of FDI as a sign of good health is unwarranted. This is even more so, given that …