An analysis of the impact of short-term capital flows on income in developing countries

2013 ◽  
Author(s):  
Amit Bhaduri
Keyword(s):  
Developing Countries ◽  
Capital Flows ◽  
Short Term ◽  
The Impact

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 Are House Prices Driven by Capital Flows? Evidence from Singapore

2016 ◽  
Vol 07 (01) ◽  
pp. 1650006 ◽  
Author(s):  
Hwee Kwan Chow ◽  
Taojun Xie
Keyword(s):  
Capital Flows ◽  
Price Index ◽  
House Prices ◽  
House Price ◽  
Capital Inflows ◽  
Residential Property ◽  
Foreign Direct Investments ◽  
Short Term ◽  
Property Price ◽  
The Impact

This paper investigates whether real house price appreciations can be attributed to the surge in real capital inflows into Singapore. We proxy capital flows by using the amount of Foreign Direct Investments (FDI) to real estate capturing the foreign purchases of property in Singapore which we deflate by the private residential property price index. Notwithstanding the absence of a cointegrating relationship, our results support the hypothesis that lagged short term fluctuations in capital inflows are positively associated with the growth rates of house prices over the last decade. We also provide evidence that macroprudential measures implemented by Singapore reduced the impact of capital inflows on house price appreciation by more than half, suggesting the effectiveness of such market cooling measures in weakening the credit growth channel.

scholarly journals Impact of Foreign Direct Investment on Domestic Investment in Developing Countries

2020 ◽  
Vol 6 (9) ◽  
pp. 256-266
Author(s):  
A. Mamatkulov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Negative Impact ◽  
Domestic Investment ◽  
Short Term ◽  
Total Investment ◽  
The Impact

Author analyzes the impact of foreign direct investment on domestic investment in host developing countries and checks whether a foreign direct investment has a “positive” or “negative” impact on domestic investment, as well as evaluating the impact of selected variables on this relationship. Using a full sample, the main conclusion of this study is that FDI does have a positive (crowding out) effect on domestic investment in this sample of developing economies. In the short term, an increase in FDI by one percentage point as a percentage of GDP leads to an increase in total investment as a percentage of the host country’s GDP of about 10.7%, while in the long term this effect is about 31% dollar terms, one US dollar represents us 1.7$ of total investment in the short term and us 3.1$ in the long term. Based on the results of this study, it was once again proved that inflation hinders domestic investment in host countries by 0.04% and 0.12% in the short and long term, respectively.

scholarly journals IMPLICATIONS OF CAPITAL FLOWS FOR DOMESTIC CREDIT GROWTH: EVIDENCE FROM PANEL DATA ANALYSIS

2020 ◽  
Vol 8 (4) ◽  
pp. 231-245
Author(s):  
Aylin Soydan ◽  
◽  
Serap Bedir Kara ◽  
Keyword(s):  
Developing Countries ◽  
Data Analysis ◽  
Panel Data ◽  
Capital Flows ◽  
Panel Data Analysis ◽  
Capital Inflows ◽  
Policy Implications ◽  
Credit Growth ◽  
Credit Creation ◽  
The Impact

Following the 2007-2009 global crisis, high credit growth became an issue of concern with an emphasis on its relationship with capital flows. It is argued that large and volatile international capital flows lead to credit expansion, which in turn, may cause economic and financial instabilities when it reaches excessive levels, particularly in developing countries. This paper aims to investigate the association between credit growth and capital inflows in the context of developing countries by using panel data analysis. The methodology employed in the study offers a number advantages by allowing for heterogeneity and cross-sectional dependence in the panel, while also considering the endogeneity issue. The overall results of the study provides evidence for the impact of capital inflows, more particularly other capital inflows, on credit growth in the sample. This finding suggests a more direct relationship between capital inflows and credit creation as other inflows mostly comprise international banking and trade credits. It is not surprising given the fact that banking sector has a critical role in the financial systems of developing countries. The significance of international dimension for credit creation through other capital inflows and the intermediary role of the banking system should have monetary policy implications, in the macroprudential or more conventional fashion.

Adaptation to climate changes by farming households in developing countries: a case study of Eritrea

2021 ◽  
pp. 55-59
Author(s):  
M.G. Debesai ◽  
Keyword(s):  
Climate Change ◽  
Developing Countries ◽  
Climate Variability ◽  
Seed Quality ◽  
Coping Mechanisms ◽  
Short Term ◽  
Impact Of Climate Change ◽  
The Impact ◽  
Farming Households

The impact of climate change on the livelihood of farming households is a great concern particularly in developing countries. Based on a household survey conducted in 2016, in Eritrea, this paper attempts to investigate the adaptation conditions to climate change impacts on smallholder farming household. Several socioeconomic, biophysical and environmental factors affecting their farming system were listed by the respondents, including drought, soil degradation, pests and diseases, poor farm management, poor soil fertility, poor agricultural tools, and poor seed quality. Farming households employed short term coping mechanisms and long term adaption strategies to overcome the problems resulted from climate variability. The households cope up with short term climate variability at the expense of deteriorating their resources or losing their assets temporarily or permanently while they practice a long term adaptation strategy which is more or less in favour of sustaining the resource and preserving the environment. It is, therefore, recommended that policymakers need to encourage sustainable development and work to reduce the negative impact of climate change on farming households by emphasising on both short tern coping mechanisms and long term adaptation strategies.

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