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Current Account Dynamics and Degree of Capital Mobility

Bulut, Levent - 2019

By modeling the current account balances (as a percentage of GDP) in a dynamic AR (1) Model, Taylor (2002) proposed to use speed of mean reversion of the dynamics of the current account as a tool for measurement of capital mobility and confirmed the stylized fact of U-Shape degree of capital...

Persistent link: https://www.econbiz.de/10012905540

Current Account Dynamics Under Information Rigidity and Imperfect Capital Mobility

Shibata, Akihisa - 2018

The current account in developed countries is highly persistent and volatile in comparison to their output growth. The standard intertemporal current account model with rational expectations (RE) fails to explain the observed current account and consumption dynamics. The RE model extended with...

Persistent link: https://www.econbiz.de/10012908417

Dynamics of Capital Account and Current Account in Sri Lanka

Maitra, Biswajit - 2019

This paper enquires the dynamics of current account and capital account in Sri Lanka for the period 2001:Q1 to 2016:Q1 and also examines the role of some policy variables such as exchange rate and interest rate in this dynamics. Estimated autoregressive distributed lag (ARDL) bound testing...

Persistent link: https://www.econbiz.de/10012890058

The Reinvestment of Multinationals as a Capital Flow : Crises, Imbalances and the Cash-Based Current Account

Hansen, Erwin - 2018

cyclicality. Moreover REFDI deepens the saving-to-investment correlation (Feldstein-Horioka puzzle), unlike the rest of FDI … "Retained Earnings Foreign Direct Investment" (REFDI), macroeconomics has so far overlooked its particularities. This paper … explores the aggregate economic properties of REFDI. It also introduces cash-based measures of saving and current account …

Persistent link: https://www.econbiz.de/10012937133

What Drives Different Types of Capital Flows and Their Volatilities in Developing Asia?

Mercado, Rogelio - 2017

Understanding the determinants of capital inflows is essential to designing an effective policy framework to manage volatile capital flows and their disruptive potential. This paper aims to identify factors that explain the size and volatility of various types of capital flows to developing Asia...

Persistent link: https://www.econbiz.de/10012971930

What Drives Capital Flows to Emerging Markets? A Survey of the Empirical Literature

Koepke, Robin - 2016

This paper reviews the rapidly growing empirical literature on the drivers of capital flows to emerging markets. The empirical evidence is structured based on the recognition that the drivers of capital flows vary over time and across different types of capital flows. The drivers are classified...

Persistent link: https://www.econbiz.de/10013005196

Institutional Drivers of Capital Flows

Alonso Alvarez, Irma - 2015

This paper empirically analyzes the role of institutional factors in shaping the dynamics of gross capital flows. We build an institutional quality index and test its relevance for both gross capital inflows and outflows using a panel of 56 countries, differentiating between high-income and...

Persistent link: https://www.econbiz.de/10013011899

Explaining Foreign Holdings of Asia's Debt Securities : The Feldstein-Horioka Paradox Revisited

Horioka, Charles Yuji - 2015

In this paper, we find that home bias is still present in all economies and regions, especially in the case of short-term debt securities, but that there are substantial variations among economies and regions in the strength of home bias, with the Eurozone economies, the US, and developing Asia...

Persistent link: https://www.econbiz.de/10013012122

Current Account Dynamics Under Information Rigidity and Imperfect Capital Mobility

Shibata, Akihisa - 2020

The current account in developed countries is highly persistent and volatile in comparison to output growth. The standard intertemporal current account model with rational expectations (RE) fails to account for the observed current account dynamics together with persistent changes in...

Persistent link: https://www.econbiz.de/10012852875

In Search of Lost Time : Examining the Duration of Sudden Stops in Capital Flows

David, Antonio C. - 2019

This paper investigates what factors affect the duration of sudden stops in capital flows using quarterly data for a large panel of countries. We find that countries with floating exchange rate regimes tend to experience shorter sudden stop episodes and that fixed exchange rate regimes are...

Persistent link: https://www.econbiz.de/10012858389