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, we ask whether this conventional wisdom still holds in our contemporary world. Our results show that, despite recent structural and regulatory changes, much of it survives. Foreign direct investment (FDI) inflo...

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Main Authors:	Eichengreen, Barry, Gupta, Poonam, Masetti, Oliver
Format:	Journal Article
Published:	The MIT Press 2018
Subjects:	CAPITAL FLOWS FOREIGN DIRECT INVESTMENT PORTFOLIO DEBT EMERGING MARKET ECONOMIES
Online Access:	http://hdl.handle.net/10986/29653

id	okr-10986-29653
recordtype	oai_dc
spelling	okr-10986-296532021-05-25T10:54:36Z Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type? Eichengreen, Barry Gupta, Poonam Masetti, Oliver CAPITAL FLOWS FOREIGN DIRECT INVESTMENT PORTFOLIO DEBT EMERGING MARKET ECONOMIES According to conventional wisdom, capital flows are fickle. Focusing on emerging markets, we ask whether this conventional wisdom still holds in our contemporary world. Our results show that, despite recent structural and regulatory changes, much of it survives. Foreign direct investment (FDI) inflows are more stable than non-FDI inflows. Within non-FDI inflows, portfolio debt and bank-intermediated flows remain the most volatile. Whereas FDI inflows are driven mainly by pull factors, portfolio debt and equity are driven mainly by push factors; bank-intermediated flows are driven a combination of push and pull factors. Capital outflows from emerging markets behave differently, however. 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. Our 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 policymakers. 2018-04-10T20:46:04Z 2018-04-10T20:46:04Z 2018-02-22 Journal Article Asian Economic Papers http://hdl.handle.net/10986/29653 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank The MIT Press Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	CAPITAL FLOWS FOREIGN DIRECT INVESTMENT PORTFOLIO DEBT EMERGING MARKET ECONOMIES
spellingShingle	CAPITAL FLOWS FOREIGN DIRECT INVESTMENT PORTFOLIO DEBT EMERGING MARKET ECONOMIES Eichengreen, Barry Gupta, Poonam Masetti, Oliver Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type?
description	According to conventional wisdom, capital flows are fickle. Focusing on emerging markets, we ask whether this conventional wisdom still holds in our contemporary world. Our results show that, despite recent structural and regulatory changes, much of it survives. Foreign direct investment (FDI) inflows are more stable than non-FDI inflows. Within non-FDI inflows, portfolio debt and bank-intermediated flows remain the most volatile. Whereas FDI inflows are driven mainly by pull factors, portfolio debt and equity are driven mainly by push factors; bank-intermediated flows are driven a combination of push and pull factors. Capital outflows from emerging markets behave differently, however. 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. Our 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 policymakers.
format	Journal Article
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	The MIT Press
publishDate	2018
url	http://hdl.handle.net/10986/29653
_version_	1764469896690794496

Are Capital Flows Fickle? Increasingly? And Does the Answer Still Depend on Type?

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