Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type?
According to conventional wisdom, capital flows are fickle. Focusing on emerging markets, this paper asks whether this conventional wisdom still holds in the contemporary world. The results show that, despite recent structural and regulatory change...
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/195801487166902153/Are-capital-flows-fickle-Increasingly-and-does-the-answer-still-depend-on-type http://hdl.handle.net/10986/26140 |
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okr-10986-261402021-06-08T14:42:47Z Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type? Eichengreen, Barry Gupta, Poonam Masetti, Oliver capital flows emerging markets sudden stops portfolio flows FDI foreign direct investment direct foreign investment DFI portfolio debt According to conventional wisdom, capital flows are fickle. Focusing on emerging markets, this paper asks whether this conventional wisdom still holds in the contemporary world. The results show that, despite recent structural and regulatory changes, much of it survives. FDI inflows are more stable than non-FDI inflows. Within non-FDI inflows, portfolio debt and bank-intermediated flows remain the most volatile. While FDI inflows are driven mainly by pull factors, portfolio debt and equity are driven mainly by push factors; and bank-intermediated flows are driven by a combination of push and pull factors. But capital outflows from emerging markets behave differently. FDI outflows from emerging markets have grown and become significantly more volatile. There is similarly an increase in the volatility of bank-intermediated capital outflows from emerging markets. The findings underscore that outflows from emerging markets, both FDI and bank-related flows, have come to play a growing role and warrant greater attention from analysts and policy makers. 2017-02-22T22:33:29Z 2017-02-22T22:33:29Z 2017-02 Working Paper http://documents.worldbank.org/curated/en/195801487166902153/Are-capital-flows-fickle-Increasingly-and-does-the-answer-still-depend-on-type http://hdl.handle.net/10986/26140 English en_US Policy Research Working Paper;No. 7972 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
capital flows emerging markets sudden stops portfolio flows FDI foreign direct investment direct foreign investment DFI portfolio debt |
| spellingShingle |
capital flows emerging markets sudden stops portfolio flows FDI foreign direct investment direct foreign investment DFI portfolio debt Eichengreen, Barry Gupta, Poonam Masetti, Oliver Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type? |
| relation |
Policy Research Working Paper;No. 7972 |
| description |
According to conventional wisdom,
capital flows are fickle. Focusing on emerging markets, this
paper asks whether this conventional wisdom still holds in
the contemporary world. The results show that, despite
recent structural and regulatory changes, much of it
survives. FDI inflows are more stable than non-FDI inflows.
Within non-FDI inflows, portfolio debt and
bank-intermediated flows remain the most volatile. While FDI
inflows are driven mainly by pull factors, portfolio debt
and equity are driven mainly by push factors; and
bank-intermediated flows are driven by a combination of push
and pull factors. But capital outflows from emerging markets
behave differently. FDI outflows from emerging markets have
grown and become significantly more volatile. There is
similarly an increase in the volatility of
bank-intermediated capital outflows from emerging markets.
The findings underscore that outflows from emerging markets,
both FDI and bank-related flows, have come to play a growing
role and warrant greater attention from analysts and policy makers. |
| format |
Working Paper |
| author |
Eichengreen, Barry Gupta, Poonam Masetti, Oliver |
| author_facet |
Eichengreen, Barry Gupta, Poonam Masetti, Oliver |
| author_sort |
Eichengreen, Barry |
| title |
Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type? |
| title_short |
Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type? |
| title_full |
Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type? |
| title_fullStr |
Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type? |
| title_full_unstemmed |
Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type? |
| title_sort |
are capital flows fickle? increasingly? and does the answer still depend on type? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/195801487166902153/Are-capital-flows-fickle-Increasingly-and-does-the-answer-still-depend-on-type http://hdl.handle.net/10986/26140 |
| _version_ |
1764461046143123456 |