conventional wisdom still holds in the contemporary world. The results show that, despite recent structural and regulatory changes …, much of it survives. FDI inflows are more stable than non-FDI inflows. Within non-FDI inflows, portfolio debt and bank …-intermediated flows remain the most volatile. While FDI inflows are driven mainly by pull factors, portfolio debt and equity are driven …

effects of the composition of capital inflows on output volatility. The paper develops a simple empirical model which, under … certain conditions that hold in the data, yields three key testable implications. First, output volatility should depend … positively on the volatilities of both foreign direct investment and portfolio and other inflows. Second, output volatility …

-specific characteristics and policies. Sudden stops now tend to affect different parts of the world simultaneously rather than bunching … challenge of understanding and coping with capital-flow volatility is far from fully met …

transactions take place. The authors find that globalization via the diversification channel expanded throughout the world during …

likely to stop bringing their capital when their economy is growing and the world interest rate is lower. Domestic agents are …

The authors address two questions: What happens to stock market size, liquidity, volatility, and integration with world …

(the VIX, the U.S. real interest rate and real exchange rate, U.S. GDP growth, and world commodity prices) that explain …

increases and decreases, respectively, of gross foreign direct investment inflows to the developing world and differentiated …

cross-border investments, and weak institutions to protect foreign investors and facilitate investment. Nonetheless, the …

and South since the 2000s. The paper shows that the region is increasingly more connected with the rest of the world, even …