Download or read book Private Capital Flows Financial Development and Economic Growth in Developing Countries electronic Resource written by Bailliu, Jeannine N and published by . This book was released on 2000 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Capital Flows and Growth in Developing Countries written by Marcelo Soto and published by . This book was released on 2000 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Capital Flows and Growth in Developing Countries written by and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book International Capital Flows written by Martin Feldstein and published by University of Chicago Press. This book was released on 2007-12-01 with total page 500 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent changes in technology, along with the opening up of many regions previously closed to investment, have led to explosive growth in the international movement of capital. Flows from foreign direct investment and debt and equity financing can bring countries substantial gains by augmenting local savings and by improving technology and incentives. Investing companies acquire market access, lower cost inputs, and opportunities for profitable introductions of production methods in the countries where they invest. But, as was underscored recently by the economic and financial crises in several Asian countries, capital flows can also bring risks. Although there is no simple explanation of the currency crisis in Asia, it is clear that fixed exchange rates and chronic deficits increased the likelihood of a breakdown. Similarly, during the 1970s, the United States and other industrial countries loaned OPEC surpluses to borrowers in Latin America. But when the U.S. Federal Reserve raised interest rates to control soaring inflation, the result was a widespread debt moratorium in Latin America as many countries throughout the region struggled to pay the high interest on their foreign loans. International Capital Flows contains recent work by eminent scholars and practitioners on the experience of capital flows to Latin America, Asia, and eastern Europe. These papers discuss the role of banks, equity markets, and foreign direct investment in international capital flows, and the risks that investors and others face with these transactions. By focusing on capital flows' productivity and determinants, and the policy issues they raise, this collection is a valuable resource for economists, policymakers, and financial market participants.

Download or read book International Capital Flows and Development written by Mr.Thierry Tressel and published by International Monetary Fund. This book was released on 2010-10-01 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Does capital flow from rich to poor countries? We revisit the Lucas paradox and explore the role of capital account restrictions in shaping capital flows at various stages of economic development. We find that, when accounting for the degree of capital account openness, the prediction of the neoclassical theory is confirmed: less developed countries tend to experience net capital inflows and more developed countries tend to experience net capital outflows, conditional of various countries’ characteristics. The findings are driven by foreign direct investment, portfolio equity investment, and to some extent by loans to the private sector.

Download or read book Capital Flows and Crises written by Barry J. Eichengreen and published by MIT Press. This book was released on 2004 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: An analysis of the connections between capital flows and financial crises as well as between capital flows and economic growth.

Download or read book Investment in Developing Countries written by Alberto E. Isgrt and published by Universal-Publishers. This book was released on 1997-10 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: The enhanced access of developing countries to the international financial market since the seventies has been characterized by boom-bust cycles of unfettered external borrowing followed by abrupt financial crises. The first chapter analyzes the macroeconomic effects of volatile capital flows to a developing country. The analysis shows that investment, consumption, and the current account deficit depend positively on the expected availability of external finance. If international investors may unexpectedly decide to reduce their exposure to financial assets issued by the country, the optimal cost of external borrowing should exceed the interest rate paid by domestic residents in the international financial market. In the absence of insurance markets for this type of risk, a tax on capital inflows can be optimal. Recent endogenous growth models characterize a firm's technology as a commodity which is both partly excludable and associated with some production inputs, such as human capital and equipment. The second chapter explores the nature of the link between equipment investment and technology at the plant level in a large sample of Colombian manufacturing establishments. The results support the endogenous growth model's notion that technology is associated with the production inputs. Larger plants that invest more in machinery and equipment and employ higher levels of human capital tend to be more efficient. Models of investment with non-convex costs of adjustment predict that microeconomic time series of investment may be characterized by infrequent investment spurts and prolonged periods of little or no investment. In the third chapter I study the pattern of investment at the plant level in different categories of capital goods. As in the U.S., plant-level investment in Colombia is lumpy, and the probability of observing a large investment episode depends positively on the time elapsed since the latest large investment episode. As a contribution to the literature, I propose and implement two alternative econometric methods for the estimation of a simple model of irreversible investment. The results show that increases in the real exchange rate (pesos per dollar) have a consistently negative effect on investment, regardless of the type of capital good.

Download or read book Capital Flows and Financial Crises written by Miles Kahler and published by Cornell University Press. This book was released on 2018-09-05 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt: Capital flows to the developing economies have long displayed a boom-and-bust pattern. Rarely has the cycle turned as abruptly as it did in the 1990s, however: surges in lending were followed by the Mexican peso crisis of 1994-95 and the sudden collapse of currencies in Asia in 1997. This volume maps a new and uncertain financial landscape, one in which volatile private capital flows and fragile banking systems produce sudden reversals of fortune for governments and economies. This environment creates dilemmas for both national policymakers who confront the "mixed blessing" of capital inflows and the international institutions that manage the recurrent crises.The authors—leading economists and political scientists—examine private capital flows and their consequences in Latin America, Pacific Asia, and East Europe, placing current cycles of lending in historical perspective. National governments have used a variety of strategies to deal with capital-account instability. The authors evaluate those responses, prescribe new alternatives, and consider whether the new circumstances require novel international policies.

Download or read book Capital Flow Deflection written by Paolo Giordani and published by International Monetary Fund. This book was released on 2014-08-08 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper focuses on the coordination problem among borrowing countries imposing controls on capital infl ows. In a simple model of capital flows and controls, we show that inflow restrictions distort international capital flows to other countries and that, in turn, such capital flow deflection may lead to a policy response. We then test the theory using data on inflow restrictions and gross capital inflows for a large sample of developing countries between 1995 and 2009. Our estimation yields strong evidence that capital controls deflect capital flows to other borrowing countries with similar economic characteristics. Notwithstanding these strong cross-border spillover effects, we do not find evidence of a policy response.

Download or read book Growth and Capital Flows with Risky Entrepreneurship written by Mr.Damiano Sandri and published by International Monetary Fund. This book was released on 2010-02-01 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper shows that the behavior of entrepreneurs facing incomplete financial markets and risky investment can explain why growth accelerations in developing countries tend to be associated with current account improvements. The uninsurable risk of losing invested capital forces entrepreneurs to rely on self-financing, so that when business opportunities open up entrepreneurs increase saving to finance the investment that produces growth. The key insight is that saving has to rise more than investment to allow also for the accumulation of precautionary assets. Plausibly calibrated simulations show that this net saving increase can sustain large and persistent net capital outflows.

Download or read book Capital Account Regimes and the Developing Countries written by Gerald K. Helleiner and published by Springer. This book was released on 2016-07-27 with total page 247 pages. Available in PDF, EPUB and Kindle. Book excerpt: An authoritative assessment of the debate over the role of volatile private capital flows and their impact on developing countries. The book outlines the long history of concern about these issues, going back to preparations for the Bretton Woods agreement. It assesses their acceleration with the growth of international capital and looks at key case studies from Latin America, Asia and Africa to assess the possibilities and problems for national and international policy responses.

Download or read book Capital Flows Composition and Economic Growth in Developing Countries written by Ali Massoud and published by . This book was released on 2003 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book What Factors Appear to Drive Private Capital Flows to Developing Countries written by Dipak Das Gupta and published by World Bank Publications. This book was released on 2000 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Private portfolio flows to a country tend to rise in response to an increase in the current account deficit, a rise in foreign direct investment flows, higher per capita income, and growth performance. The most important determinant of official lending to a developing country seems to be the external current account balance or a change in international reserves in the country.

Download or read book Revisiting the Determinants of Capital Flows to Emerging Markets A Survey of the Evolving Literature written by Swarnali Ahmed Hannan and published by International Monetary Fund. This book was released on 2018-09-28 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper documents the evolution of gross and net capital flows to emerging market economies and surveys the large literature on the potential drivers. While the capital flow landscape has been shaped by the evolution of both global and country-specific factors, the relative importance of these factors has varied over time and differs depending on the type of capital flows. The findings from the survey of the literature thus underscores the importance of policies in both source and recipient countries in shaping capital flows.

Download or read book Growing Up with Capital Flows written by Ashoka Mody and published by International Monetary Fund. This book was released on 2002-04 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a sample of 60 developing countries, we find evidence of a strong-almost one-to-one-relationship between capital inflows and domestic investment. However, this relationship has evolved over time. While growing financial integration with the rest of the world has increased access to foreign private capital, the relationship between foreign capital and domestic investment has weakened, reflecting changes in the composition of inflows, offsetting outflows, and increased foreign-currency reserve requirements. In contrast, better policies have not only brought in more capital but also, especially for foreign direct investment, have tended to strengthen the relationship between foreign capital and domestic investment.

Download or read book Foreign Capital In Developing Economies written by Stefano Manzocchi and published by Springer. This book was released on 2016-01-06 with total page 213 pages. Available in PDF, EPUB and Kindle. Book excerpt: The object of this volume is to evaluate the pattern and the function of foreign capital in developing countries in a long-run perspective. The main conceptual instruments employed are the theory of economic growth, and the techniques associated with recent advances in growth econometrics. This empirical work points out that there is no mechanical trade-off between the short-term dangers and the long-run gains from capital market integration, but the growth benefits of foreign capital in transforming economies are conditional on an effective destination of the resources. Over-borrowing and excessive consumption are the main pitfalls in the short- as in the long-run. Nevertheless, foreign capital can be conducive to faster growth and possibly higher welfare.

Download or read book Opening Up Capital Flows and Financial Sector Dynamics in Low Income Developing Countries written by Sebastian Horn and published by International Monetary Fund. This book was released on 2021-09-24 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past two decades, many low-income developing countries have substantially increased openness towards external financing and have received large capital inflows. Using bank-level micro data, this paper finds that capital inflows have been associated with financial deepening through increases in bank loans, deposits, and wholesale funding. Domestic banks increase loans more than foreign banks. There are only modest signs of a build-up in financial vulnerabilities. Causality is examined through an instrumental variable approach and an augmented inverse-probability weighting estimator. These approaches indicate only limited evidence for global push effects, pointing towards the importance of domestic pull factors.