scholarly journals International Capital Flows When Safe Assets Scarcity Matters

2021 ◽  
pp. 227797872198993
Author(s):  
Ly Dai Hung ◽  
Nguyen Thi Thuy Hoan
Keyword(s):  
Cross Section ◽  
Productivity Growth ◽  
Capital Flows ◽  
International Capital Flows ◽  
Capital Inflows ◽  
International Capital ◽  
Analysis Method ◽  
Instrument Variable ◽  
Jel Classifications ◽  
Section Analysis

In an open multi-country economy, the safe assets supply shapes the pattern of international capital flows. A higher productivity growth rate raises the net capital inflows for economies with abundant safe assets, but reduces the net capital inflows for economies with scarce safe assets. The cross-section analysis on a sample of 170 economies over 1980–2013 confirms the theory. The evidence is robust for instrument-variable (IV) analysis method. JEL Classifications: F15, F36, F43

scholarly journals Analysis on the Impact of Short-Term International Capital Flows on Chinese Stock Market on the Basis of VAR Model

2018 ◽  
Vol 10 (8) ◽  
pp. 77
Author(s):  
Ning Wu
Keyword(s):  
Stock Market ◽  
Capital Flows ◽  
Composite Index ◽  
International Capital Flows ◽  
Capital Inflows ◽  
Var Model ◽  
Chinese Stock Market ◽  
International Capital ◽  
Short Term ◽  
The Impact

With the continuous development of global economic integration and financial markets, international capital flows more and more frequently, the frequent flow of international capital will inevitably affect the yield of Chinese stock market. This article uses short-term international capital inflows SS and Shanghai composite index R as research objects. Based on monthly data from January 2002 to October 2017, VAR model was constructed using Eviews8.0 to study the impact of short-term international capital flows on Chinese stock market. Empirical studies have found that short-term international capital flow is the granger cause of changes in the Shanghai composite index yield, while the yield of Chinese stock market will not affect short-term international capital flows. At the end of this paper, relevant suggestions are put forward according to the conclusions.

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

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.

scholarly journals The South's demographic transition and international capital flows in a financially integrated world economy

2020 ◽  
Vol 86 (1) ◽  
pp. 1-45
Author(s):  
Frédéric Gannon ◽  
Gilles Le Garrec ◽  
Vincent Touzé
Keyword(s):  
Capital Flows ◽  
Demographic Transition ◽  
Economic Consequences ◽  
International Capital Flows ◽  
Capital Inflows ◽  
Productive Capacity ◽  
International Capital ◽  
The South ◽  
Fully Integrated ◽  
The North

AbstractIn the coming decades, the countries of the South will be facing the aging of the population faster than the countries of the North. This will have long-term economic consequences for the South but also for the North through the changing of international capital flows. To study the latter, we build a simple two-region two-period overlapping generations (OLG) model, assuming fully integrated financial markets. This allows us to determine the analytical expression of the world interest rate dynamics at general equilibrium and the resulting capital flows accruing to each of the two regions (the North and the South). From there, we analyze how a reduction in either fertility or mortality alters the magnitude of the international capital flows. Contradictory effects are evidenced. To clear-up any ambiguity and to study the South's demographic transition, which involves a succession of shocks, we propose numerical simulations. Even if the results stress that the institutional context and technological catching-up may matter, they suggest in a rather general way that the declines in both fertility and mortality tend to reduce the relative capital needs of the Southern economies and consequently their capital inflows. This, in turn, would be beneficial to the North's productive capacity, which should then hold more capital.

scholarly journals Inflows of Capital to Developing Countries in the 1990s

1996 ◽  
Vol 10 (2) ◽  
pp. 123-139 ◽  
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.

scholarly journals The Impact of International Capital Flows on Central and Eastern European Countries’ Investments, Savings, Consumption, and Current Accounts

2020 ◽  
Vol 31 (4) ◽  
pp. 450-460
Author(s):  
Laura Vilutiene ◽  
Daiva Dumciuviene
Keyword(s):  
Capital Flows ◽  
Emerging Market ◽  
Developed Countries ◽  
International Capital Flows ◽  
Capital Inflows ◽  
Eastern European ◽  
International Capital ◽  
Domestic Savings ◽  
National Economies ◽  
The Impact

Capital flows have been analysed from various perspectives and yet no consensus has been reached about the impact of international capital flows on national economies. The main aim of this paper is to present the theoretical aspects of the effect of international capital flows on national economies, and to analyse the impact of international capital flows on Central and Eastern European (CEE) countries’ domestic savings, investments, consumption, and current accounts. During the investigation, the latest studies on international capital flows were reviewed and systemised, 11 CEE countries’ main indicators from across a 10-years period were collected, and computed coefficients, which represent the change associated with a variation in clusters’ capital inflows, equal to 1 percent change of GDP, were analysed. The analyses conducted show that capital flows have an impact on countries’ economies. The main findings are:  first, domestic savings and consumption are seen to have been more strongly associated with capital inflows than investments in developed countries. Second, the relationship between investments, domestic savings, consumption and one inflow in portfolio flows would be negative, in both highly developed countries and emerging market countries. Third, where positive inflows in net and gross capital are concerned, foreign direct investments would have an insignificant positive impact on current accounts in highly developed countries and developed countries but a negative impact in emerging market countries. By achieving economic growth dynamics within a specific country, a wide evaluation of a country’s capital flows can be performed, and control of capital flows gained, by applying different assessment models.

scholarly journals International capital flows in club of convergence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ly Dai Hung ◽  
Hoan Nguyen Thi Thuy
Keyword(s):  
Economic Growth ◽  
Theoretical Model ◽  
Empirical Analysis ◽  
Capital Flows ◽  
International Capital Flows ◽  
Capital Inflows ◽  
International Capital ◽  
Content Type ◽  
The Empirical Analysis

PurposeThe paper analyzes the pattern of international capital flows, accounting for the convergence on economic growth.Design/methodology/approachThe paper employs an empirical analysis combined with a theoretical model. The evidence is based on a cross-section regression over a sample of 172 economies. And the model is an open multi-country overlapping generation (OLG) economy.FindingsThe empirical evidence records that the pattern of international capital flows in the club of convergence can diverge from the pattern in the club of unconvergence. A higher productivity growth rate is associated with more net capital inflows in the club of convergence but less net capital inflows in the club of unconvergence. The theory shows that proximity to world technology frontier can explain the divergence of capital flows.Research limitations/implicationsThe result can account for controversies between theories on the cross-border capital flows: allocation puzzle, up-hill capital flows and neoclassical growth model.Originality/valueThe paper combines both the empirical analysis with the theoretical model construction to account for the role of convergence of economic growth on determining the pattern of international capital flows.

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