The Complexity of Global Capital Flows: Evidence from G20 Countries

With the high volatility of capital flow and the imbalance of capital flow between emerging and advanced economies, the complexity of capital flow management is always attractive to researchers and policymakers. This study explores how capital flows in G20 countries are significantly impacted by pull and push factors by using regressions, dynamic system GMM, and Panel-VAR models. The results show that international capital flows are significantly associated with domestic financial development, which is measured by stock-market liquidity and domestic credit. Moreover, international capital flows are affected by push factors, such as the growth of the world economy and fluctuations of the crude oil price. This study controls for real interest rate, foreign currency, and capital restriction because the government and macroprudential policies are critical influences on stabilizing capital flows.

Download Full-text

RE-MEASUREMENT OF SHORT-TERM INTERNATIONAL CAPITAL FLOWS AND ITS APPLICATION: EVIDENCE FROM CHINA

The Singapore Economic Review ◽

10.1142/s0217590818500157 ◽

2018 ◽

pp. 1-21

Author(s):

JUNYI SHI

Keyword(s):

Capital Flows ◽

Direct Method ◽

Capital Flow ◽

International Capital Flows ◽

International Capital ◽

Short Term ◽

Residual Method ◽

Leading Indicator ◽

Cross Correlation Analysis ◽

International Capital Flow

In this paper, we use the improved direct method and improved residual method to re-measure the annual scale and to measure the quarterly scale of the short-term international capital flows based on the Chinese Balance of Payment table. At the same time, we use the residual method to estimate the monthly scale of the Chinese short-term international capital flows as well. Then we explain and test these calculated results. Next we apply the results to the lead–lag analysis of macro-economy. To judge whether the short-term international capital flow is a leading indicator, we apply the Kullback–Leibler information method and cross-correlation analysis method to analyze the lead–lag relationship between the short-term international capital flows and macro-economy by selecting some representative macroeconomic indicators as a reference. Our empirical analysis shows that in China, the short-term international capital flow is a leading indicator to macro-economy and a coincident indicator to Purchasing Managers’ Index. In the end, we give some conclusions and policy proposals.

Download Full-text

The Impact of International Capital Flows on Jordan’s Economic Growth

International Journal of Economics and Financial Research ◽

10.32861/ijefr.59.214.220 ◽

2019 ◽

pp. 214-220

Author(s):

Basem M. Lozi ◽

Mamoun Shakatreh

Keyword(s):

Economic Growth ◽

Capital Flows ◽

Time Series Data ◽

Developed Countries ◽

International Capital Flows ◽

Capital Inflows ◽

Series Data ◽

International Capital ◽

The Government ◽

The Impact

The aim of this study is to examine the impact of international capital flows on the economic growth in Jordan during the period from 2005 to 2017, The study also examines trends and composition of capital inflows. The study used descriptive analytical research method which was appropriate for the purpose of research. By using time series data, the study found that Foreign Direct Investment (FDI), foreign portfolio investment (FPI), grants (Gr) and Worker remittances (WR) are positively affecting the economic growth direct contribution. Based on the research results, the study came with a several recommendations, the most important recommendation is; the government of Jordan should create and relax the rules and regulations to attract more investors, and also the government should work hand in hand with the developed countries to create economic and employment opportunities, improve the country’s competitiveness, and expand growth within the private sector so that everyone in Jordan has the opportunity to contribute to a brighter future.

Download Full-text

An Overview of International Capital Flows and Its Impact on Chinese Financial Market

E3S Web of Conferences ◽

10.1051/e3sconf/202127501015 ◽

2021 ◽

Vol 275 ◽

pp. 01015

Author(s):

Yunxin Yi

Keyword(s):

Financial Market ◽

Capital Flows ◽

Market Integration ◽

Complex Structure ◽

Capital Flow ◽

International Capital Flows ◽

International Capital ◽

Financial Market Integration ◽

Global Movement ◽

Near Future

With the acceleration of economic globalization and financial market integration, there has been a gradual increase in the amount of international capital and considerable global movement of capital flow. Due to its inherent uncertainty, immense capital flows, and complex structure, international capital flows have an enormous impact on international trade, finance flowing, and economic development for countries all over the world. This paper aims to provide a full overview of international capital flow, focusing on the internal fluctuation patterns and developing trends in the near future. Through the qualitative analysis of China’s capital flows, this paper also summarizes its major characteristics and multiple effects caused by international capital flows.

Download Full-text

The Impact of International Capital Flows on Economic Growth in Palestine

Journal of Economics Management and Trade ◽

10.9734/jemt/2020/v26i1130307 ◽

2020 ◽

pp. 23-37

Author(s):

Nemer Badwan ◽

Mohammed Atta

Keyword(s):

Economic Growth ◽

Capital Flows ◽

Positive Impact ◽

Developed Countries ◽

International Capital Flows ◽

Global Markets ◽

International Capital ◽

Financial Flows ◽

The Government ◽

The Impact

The study aims to investigate and examine the impact of International Capital Flows and other Financial Flows on Economic Growth in Palestine during the period (2007-2018). This study also included trends and methods of forming Capital Flows and Financial Capital Flows. The study used the appropriate descriptive and analytical approach by the authors for the purposes and requirements of the research to investigate the real results and required. The researchers used the time intervals method, and the study concluded that Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), Large Loans (World Bank), Worker Remittances (WR), Foreign Affairs Borrowing and Financial Grants (GR) have a noticeable positive impact on Economic Growth in Palestine. The study made several important and useful recommendations, the most notably: That Palestinian Government must lay down and establish lighter and comfortable rules and regulations for investors to attract more investors and Foreign Investments to Palestine. Besides, the Palestinian Government must work hard side by side with the other Developed Countries for reaching better Economic Development and increasing a good rate. To achieve a good rate of Economic Growth, the government must work hard to create job opportunities for citizens to reduce the high Unemployment rate in the country. The Government should improve the standard of living and competitiveness in global markets and obtain a sufficient share in the International Financial Markets, so the Government must work to provide new opportunities for Global Markets Integration by creating a good environment to increase Economic Growth and Technology Development.

Download Full-text

Inflows of Capital to Developing Countries in the 1990s

The Journal of Economic Perspectives ◽

10.1257/jep.10.2.123 ◽

1996 ◽

Vol 10 (2) ◽

pp. 123-139 ◽

Cited By ~ 418

Author(s):

Guillermo A Calvo ◽

Leonardo Leiderman ◽

Carmen M Reinhart

Keyword(s):

Developing Countries ◽

Latin America ◽

Foreign Investment ◽

Capital Flows ◽

Capital Flow ◽

International Capital Flows ◽

Capital Inflows ◽

International Capital ◽

International Capital Flow

Half a decade has passed since the resurgence of international capital flows to many developing countries and history has, once again, shown that foreign investment is prone to repeated booms and busts. Mexico's 1994 crisis is but a recent example that highlights the vulnerability of capital-importing countries to abrupt reversals; thus, an aim of policy is to reduce that vulnerability. This paper discusses the principal causes, facts, and policies that have characterized capital inflows to Asia and Latin America. In particular, the authors examine what policies have proved useful in protecting these economies from the vagaries of international capital flow.

Download Full-text