We investigate whether some types of capital flows are more likely to reverse than others during currency crises. Earlier statistical testing has yielded conflicting results on this issue. We argue that the problem with the earlier studies is that the degree of variability of capital flows...

Most of the emerging market currency crises are accompanied by sharp reversals or “sudden stops” of capital inflows. We investigated whether some types of capital flows are more likely to reverse than others during these crises. Foreign direct investment is usually considered stable while...

Most of the emerging market currency crises are accompanied by sharp reversals or quot;sudden stopsquot; of capital inflows. We investigated whether some types of capital flows are more likely to reverse than others during these crises. Foreign direct investment is usually considered stable...