scholarly journals Banking Crises, External Crises and Gross Capital Flows

2016 ◽  
Vol 2016 (273) ◽  
Author(s):  
Thorsten Janus ◽  
◽  
Daniel Riera-Crichton ◽  
Keyword(s):  
Capital Flows ◽  
Banking Crises ◽  
Gross Capital Flows

scholarly journals Gross Capital Flows: Dynamics and Crises

2011 ◽  
Author(s):  
Fernando Broner ◽  
Tatiana Didier ◽  
Aitor Erce ◽  
Sergio L. Schmukler
Keyword(s):  
Capital Flows ◽  
Gross Capital Flows

Dynamics of capital controls: panel evidence from Asia

2020 ◽  
Vol 47 (2) ◽  
pp. 242-263
Author(s):  
Biplab Kumar Guru ◽  
Inder Sekhar Yadav
Keyword(s):  
Capital Flows ◽  
Capital Controls ◽  
Substitution Effect ◽  
Capital Flight ◽  
Empirical Examination ◽  
Content Type ◽  
Asian Economies ◽  
Asset Classes ◽  
The Impact ◽  
Gross Capital Flows

PurposeThis study empirically examines the effect of capital controls on the volume and composition of capital flows at aggregated as well as at disaggregated level by different asset classes such as debt, FDI, equity, and derivatives.Design/methodology/approachSeveral dynamic panel SYS-GMM models are employed on two sets of unique data on cross-border capital flows and capital control index along with control variables at aggregated and disaggregated level by different asset classes during 1995–2015 for a sample of 31 Asian economies.FindingsEconometric findings suggest that higher capital controls effectively reduce gross capital flows. The reduction in gross capital flows is largely found to be on account of effectiveness of controls on equity flows. However, the impact of controls on overall debt and derivative flows is found to be insignificant. Further, it was found that an increase in direct capital controls disaggregated by inflow and outflow categories significantly reduced the inflow of debt and equity + FDI flows and outflow of equity + FDI and derivative flows. Finally, the study did not find any substitution effect (due to indirect controls) and net effect on capital flows.Practical implicationsResults of such empirical examination may enable governments in respective countries to pursue prudent and rational capital controls as a shield against capital flight and shock transmission.Social implicationsPreventing capital flight through effective controls has macroeconomic benefits such as maintaining stability in income, growth, interest rate, exchange rate, and employment levels for the society.Originality/valueThe primary contribution of the study is the analysis of effectiveness of capital controls disaggregated by different asset categories such as debt, equity, FDI, and derivatives using two unique recent data sets for a large sample of Asian economies.

scholarly journals Gross Capital Flows: Dynamics and Crises

2011 ◽  
Author(s):  
Fernando A. Broner ◽  
Tatiana Didier ◽  
Aitor Erce ◽  
Sergio L. Schmukler
Keyword(s):  
Capital Flows ◽  
Gross Capital Flows

International reserves and gross capital flows dynamics

2016 ◽  
Vol 60 ◽  
pp. 151-171 ◽  
Author(s):  
Enrique Alberola ◽  
Aitor Erce ◽  
José Maria Serena
Keyword(s):  
Capital Flows ◽  
International Reserves ◽  
Gross Capital Flows

Dynamics of the Cross-Country Growth/Volatility Relationship

2007 ◽  
Vol 7 (2) ◽  
pp. 1850108 ◽  
Author(s):  
Jeffrey A. Edwards
Keyword(s):  
Capital Flows ◽  
Negative Impact ◽  
Positive Impact ◽  
Cross Country ◽  
The Cross ◽  
Developed Nations ◽  
Growth Volatility ◽  
Gross Capital Flows ◽  
The Relationship ◽  
Over Time

This study evaluates structural changes over time in the cross-country relationship between growth and volatility. Using a GMM 2SLS method to control for endogenous variables, and a time-series based rolling window estimation procedure, this study adds to the current literature in two significant ways. The first is that to assume the cross-country growth/volatility correlation is constant over time, or differs across ad hoc predetermined intervals of time is inappropriate. Instead, the early to mid 1990's seems to be the primary area whereby there are significant changes in the relationship across countries. Specifically, volatility negatively impacted growth for developed nations around this time, while it positively impacted growth for developing nations--the latter happening a few years later than the former. The second finding is that the positive impact that trade had on the growth/volatility relationship for developing countries during this period is outweighed by the negative impact of gross capital flows. Among developed nations, globalization reduces a negative effect that gross capital flows has on the relationship. For policy and constituency appeasement purposes the former is an argument for caution when entering into the global economy, and the latter an argument to embrace it.

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