While prior to the global financial crisis the empirical international capital flow literature has focused on net capital flows (the current account), since the crisis there has been an increased focus on gross flows. In this paper we jointly analyze global drivers of gross flows (outflows plus...

This working paper was written by J. Scott Davis (Federal Reserve Bank of Dallas) and Eric Van Wincoop (University of Virginia and NBER).The correlation between capital inflows and outflows has increased substantially over time in a sample of 127 advanced and developing countries. We provide...