scholarly journals Capital Flows to Emerging Economies: Does the Emperor Have Clothes?

2003 ◽  
pp. 1-19 ◽  
Author(s):  
Stephany Griffith-Jones
Keyword(s):  
Emerging Economies ◽  
Capital Flows

Capital flows to emerging economies: Minsky in the tropics

2010 ◽  
Vol 35 (4) ◽  
pp. 663-683 ◽  
Author(s):  
M. R. Agosin ◽  
F. Huaita
Keyword(s):  
Emerging Economies ◽  
Capital Flows ◽  
The Tropics

Restrictive Policy to Curb Capital Flows Volatility

2021 ◽  
pp. 2150010
Author(s):  
Chokri Zehri
Keyword(s):  
Exchange Rate ◽  
Emerging Economies ◽  
Capital Flows ◽  
Capital Controls ◽  
Dynamic Panel Data ◽  
Exchange Rate Shocks ◽  
Local Projections ◽  
Empirical Approaches ◽  
Restrictive Policy

We examine the role of the restrictive policy, through capital controls, in reducing the capital flows volatility. The study highlights the effects of these controls to dampen international financial shocks. Using quarterly data of 28 emerging economies over the period between 1999 and 2019, three empirical approaches are applied, dynamic panel data, ARDL, and local projections models. Four indexes of capital controls have contributed to the finding that a tighter level of capital controls reduces the sensitivity of capital flows to monetary and exchange rate shocks. These findings on the benefits of capital controls are particularly asymmetric according to the differences between controls on inflows and outflows, and the differences between floating and pegged exchange rate regimes.

scholarly journals Changing Trend of Capital Flows: The Case of India

2013 ◽  
Author(s):  
Shailesh Gandhi ◽  
Hemantkumar P. Bulsara ◽  
Vaishali S. Dhingra
Keyword(s):  
Economic Integration ◽  
Emerging Economies ◽  
Capital Flows ◽  
Capital Mobility ◽  
New Economic Policy ◽  
Private Debt ◽  
International Capital Mobility ◽  
Exposed Individual ◽  
Developed Nations ◽  
Economic Stabilization

Many countries witnessed enormous increases in international capital mobility after globalization. This, in turn, has improved economic integration among emerging economies and developed nations. The trend of these cross country flows of capital discloses that non-debt creating private capital flows are dominating the official flows which come in the form of official grants and private debt flows. Moreover, the portfolio equity investment which shows tremendous growth has exposed individual countries to the risk of improved volatility and sudden stops. These trends, driven by globalization, have enabled the pursuit of higher returns and portfolio diversification as well as market-oriented reforms in many countries which have liberalized access to financial markets. As a new participant in the globalization wave, India went through several structural and policy changes only in the early 1990s. India introduced a New Economic Policy guided by the IMF and the World Bank with the intention of economic stabilization. This paper reviews several literature on fundamental aspects and some former empirical evidence about globalization and capital flows to emerging economies with special reference to India. It also highlights the adverse impact of hot money along with debt flow in India.   Keywords: Globalization, emerging economies, economic integration, capital flows.

Institutional Quality and International Capital Flows to the Emerging Economies

2021 ◽  
Vol 3 (2) ◽  
pp. 166-176
Author(s):  
Muhammad Atiq-ur-Rehman ◽  
Furrukh Bashir ◽  
Muhammad Shahid Maqbool ◽  
Rashid Ahmad ◽  
Saima Liaqat
Keyword(s):  
Panel Data ◽  
Emerging Economies ◽  
Capital Flows ◽  
Emerging Market ◽  
Institutional Quality ◽  
Equity Capital ◽  
International Capital Flows ◽  
International Capital ◽  
Data Set ◽  
Fdi Inflows

The international capital flows and the factors influencing them are imperative in this era of globalization and financial liberalization. This paper empirically examines the role of institutional quality in enticing foreign capital flows in emerging market economies (EMEs). A panel data set for the period 1995-2018 is used for the 24 major EMEs including Argentina, Bangladesh, Brazil, Chile, China, Czech Republic, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Romania, Russia, South Africa, Thailand, Turkey, Ukraine, and Venezuela.  The system GMM estimation technique of dynamic panel data handling developed by Arellano-Bover (1995) and Blundell-Bond (1998) is employed for the estimation. The empirical results reveal that the FDI inflows are positively and significantly affected by the institutional quality, but the portfolio equity capital inflows are not influenced by any indicator of institutional performance. In other words, the Lucas paradox is explained by the institutional quality only in the case of FDI inflows.  The study accomplishes that the policy aiming at attracting FDI flows by improving institutional infrastructure is expedient for the emerging economies.

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