What drives portfolio capital inflows into emerging market economies? The role of the Fed's and ECB's balance sheet policies

2022 ◽  
pp. 100881
Author(s):  
Michał Ledóchowski ◽  
Piotr Żuk
Keyword(s):  
Emerging Market ◽  
Balance Sheet ◽  
Capital Inflows ◽  
Emerging Market Economies ◽  
Market Economies

scholarly journals De-Leveraging and Mitigating Pro-Cyclicality of Capital Flows in Emerging Market Economies: Role of Macro-Prudential Policies

2013 ◽  
Author(s):  
Tolga Dağlaroğlu ◽  
Baki Demirel ◽  
Serdar Varlık
Keyword(s):  
Interest Rates ◽  
Capital Flows ◽  
Foreign Currency ◽  
Emerging Market ◽  
Capital Inflows ◽  
Emerging Market Economies ◽  
Strongly Correlated ◽  
International Capital ◽  
Market Economies

International capital flows have been on an unprecedented roller-coaster ride in recent years. Capital flows to emerging market economies have been strongly correlated with changes in global financing conditions, rising sharply during periods with relatively low global interest rates and low VIX (called risk-on) and shrinking afterward. In open emerging market economies, interest rate increases can attract excessive capital inflows appreciating the exchange rate, and leading to excessive borrowing in foreign currency, and encouraging leverage. A well-designed macro prudential policy prevents credit –driven bubble and mitigating pro-cyclicality of capital flows.

Harinder S. Kohli (ed.). Growth and Development in Emerging Market Economies: International Private Capital Flows, Financial Markets and Globalisation. New Delhi: Sage Publication 2008. 369 pages. Hardbound. Indian Rs 695.00.

2008 ◽  
Vol 47 (3) ◽  
pp. 304-305
Author(s):  
Henna Ahsan
Keyword(s):  
Capital Flows ◽  
Growth And Development ◽  
Global Economy ◽  
Emerging Market ◽  
Balance Sheet ◽  
Emerging Market Economies ◽  
New Delhi ◽  
Infrastructure Development ◽  
Market Economies ◽  
Emerging Market Countries

The book discusses the different experiences in Asia and Latin America, while covering the closely related areas under the purview of Emerging Market Economies (EMEs). The first chapter, “Introduction and Overview” has written by Harinder S. Kohli gives an excellent review of the existing literature on the subject. The book discusses six related topics which include nine papers presented at the Emerging Markets Forum Meeting held in Jakarta, Indonesia, in September 2006. The book highlights the main factors of growth and development in Emerging Market Economies (EMEs) now closely related with international capital flows, development of financial market, the countries’ ability to integrate successfully with the global economy through trade and investment and their ability to forge public-private partnerships including infrastructure development. Chapter 2, of the book is an article titled “Global Imbalances, Oil Revenues and Capital Flows to Emerging Market Countries” by Jack Boorman explains the favourable global environment and its impact on capital flows to Emerging Market Countries (EMCs). The EMCs got advantage from this benign global economic environment, such as high economic growth rate, increase in exports, better national balance sheet and increase in foreign exchange reserves, but due to high oil prices the situation has been changed.

scholarly journals The Main Determinants of Capital Inflows in Emerging Market Economies: Does the Exchange Rate Regime Matter?

2020 ◽  
Vol 6 (2) ◽  
pp. 163-167
Author(s):  
Fatma Taşdemir
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Regime ◽  
Emerging Market ◽  
Capital Inflows ◽  
Emerging Market Economies ◽  
Foreign Direct Investments ◽  
Market Economies ◽  
Real Gdp ◽  
Long Run ◽  
Main Determinants

There is a bulk of literature in analyzing the impacts of exchange rate regimes (ERRs) on capital flows into emerging market economies. However, these studies mainly do not take into account integration and cointegration properties of variables. This paper aims to tackle this important issue by investigating whether ERRs matter for the impacts of the main push (global financial conditions, GFC) and pull (real GDP) factors on capital inflows into emerging market economies. We find that worsening GFC decreases all types of capital inflow except foreign direct investments in case of floating ERR. This impact is statistically significant only for portfolio inflows in case of managed ERR. The pull factor is often positive and statistically significant in determining capital inflows in the long-run only under floating ERRs. These results suggest that the long-run impacts of the main pull and push factors on capital inflows are often magnified under more flexible ERRs.

scholarly journals CORPORATE GOVERNANCE IN EMERGING MARKET ECONOMIES: THE THEORY BEHIND CORPORATE GOVERNANCE AND ITS PRACTICAL APPLICATION IN THE BRICS COUNTRIES –ANALYSIS OF THE BRAZIL EXAMPLE

2020 ◽  
Vol 5 (8) ◽  
pp. 38-46
Author(s):  
Margarita Khoteeva ◽  
Daria Khoteeva
Keyword(s):  
Corporate Governance ◽  
Foreign Investment ◽  
Capital Investment ◽  
Foreign Capital ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Practical Application ◽  
Market Economies ◽  
Brics Countries

This article examines the role of corporate governance regulations in the emerging market economies giving a critical analysis of the example of a BRICs country - Brazil. The article presents a study of the theoretical aspects of corporate governance regulations, how they work and what effect they have on the economy of a developing country. The study is motivated by the question how corporate governance can benefit foreign investment into an emerging market country. The findings of the study are illustrated by the Brazilian example of how the corporate governance regulations were introduced into company practice in the country and what effect they had on the economic situation. This analysed example shows what problems were identified in the process and various ways to overcome them to provide more confidence to the foreign capital investment into the country.

The Role of Governance on Outward Foreign Direct Investment in Emerging Market Economies

2017 ◽  
pp. 77-101 ◽  
Author(s):  
Adem Gök
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Outward Fdi ◽  
Or Efficiency ◽  
Market Economies ◽  
Physical Infrastructure ◽  
Governance Infrastructure

Emerging market economies have clear deficit in governance infrastructure and also have an increasing trend in the amount of foreign direct investment (FDI) outflows compared with advanced countries. Hence the main issue of the study is to identify the determinants leading to the increase in FDI outflows with special emphasize given to the role of governance infrastructure. Thus, the aim of the study is to analyze the effect of governance infrastructure together with other control variables on FDI outflows in emerging market economies. It is found that improvement in all measured aspects of governance infrastructure leads to increase in FDI outflows from emerging market economies and governance infrastructure, human capital and physical infrastructure are base factors for MNCs taking outward FDI decision from emerging market economies. It is also found that FDI outflows from emerging market economies are not market or efficiency seeking; instead they are resource, labor or finance seeking.

Economic Growth and Environmental Impacts of Foreign Direct Investment in Emerging Market Economies

2019 ◽  
pp. 107-122
Author(s):  
Adem Gök
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Direct Investment ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Panel Var ◽  
Market Economies ◽  
Pollution Haven

The chapter investigates the role of FDI on growth, the role of FDI on environmental quality, and the role of environmental quality on FDI in 23 emerging market economies over the period of 1993-2014 by panel VAR analysis. It observes that FDI contributes to economic growth and environmental degradation in emerging market economies. In addition, environmental degradation attracts FDI inflows into host emerging market economies. The results support pollution haven hypothesis and contradict pollution halo hypothesis.

scholarly journals Empirical study of the fiscal policy impact on economic growth

2017 ◽  
Vol 15 (3) ◽  
pp. 316-322 ◽  
Author(s):  
Mykola Pasichnyi
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Emerging Market ◽  
Positive Influence ◽  
Emerging Market Economies ◽  
Market Economies ◽  
Role Of The State ◽  
Budget Policy ◽  
The Impact

The challenges of economic globalization, recession, and the essential changes in market conditions, as well as the financial institutionalization, determine the expediency of the new studies to explore the impact of fiscal instruments on the dynamics of economic growth and social stability. This paper examines the role of fiscal policy in the economic growth ensuring in advanced and emerging market economies over the period from 2001 to 2015. The research indicates the growing role of the state (in general) and the budget (in particular) in regulation of social and economic processes. Based on the methods of economic regression, the interrelations between government spending and GDP growth in different groups of countries were evaluated. The study emphasized the directions to increase the positive influence of budget policy on economic development for countries with emerging market economies. This can be achieved by harmonization of the tax burden and structure, improving the use of budget funds, conducting structural optimization of budget expenditures, further development of financial and budget institutions, implementation of the fiscal constraints and rules while forming the basic indicators of fiscal policy.

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