Download or read book Essays on International Capital Flows to Developing Countries written by Bilal Keskinsoy and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates international capital flows to developing countries for the period 1970-2006. The first chapter introduces the theoretical and empirical framework of the thesis, motivates it, overviews its building blocks (i.e. the following chapters) and clarifies its approach to the balance of payments. The second chapter reviews the data and shows the overall trends and developments in capital flows to the developing world by focusing on the geographical regions and income groups. The core of the thesis explores the empirical puzzle that although one would expect international capital to flow to capital scarce countries where returns are higher, observation shows that capital flows to richer rather than to poorer countries (the Lucas paradox). To explore this total capital is measured as the sum of foreign direct investment and portfolio equity flows. The third chapter addresses the argument, based on cross-section evidence (Alfaro et al, Rev. Econ. Stats), that including the quality of institutions accounts for the paradox (because richer countries have better institutions they attract more capital) and finds that this only holds if developed countries are included; within developing countries, institutions do not account for the paradox. The fourth chapter extends this by including institutional quality indicators among determinants of capital inflows and employs a variety of panel data estimators; the quality of institutions does not resolve the Lucas paradox, although certain types of institutions are important. The persistence in the paradox and implied non-convergence could be ascribed to the detrimental impacts of negative shocks and volatility in global financial markets or to a Linder-type home bias in international finance. The fifth chapter analyzes volatility, comovement (or contagion risk) and sudden stop (reversibility) of capital flows (foreign direct investment (FDI), foreign portfolio equity investment, long-term and short-term debt flows) using time series econometric techniques for twelve emerging market economies over 1970-2006. This is informative on the pattern and relationship between capital inflows, with implications for accommodating macroeconomic policies in countries receiving inflows. The chapter also addresses the predictions of conventional theory, that differences are associated with the maturity of the capital (long-term vs. short-term), with the information-based trade-off model of Goldstein and Razin (2006), that differences are associated with the structure of the capital (equity vs. debt). In line with the latter, equity flows (FDI and portfolio) are less volatile, more persistent, more predictable and less susceptible to sudden stops than debt flows. Contrary to conventional theory, short-term flows are not more volatile, but there is evidence that correlations and risks of contagion are stronger within the pairs of long-term and equity capital flows than within the short-term capital flows.

Download or read book Three Essays on Economic Growth International Capital Flows and Country Risk written by Hulya Arik and published by . This book was released on 2006 with total page 604 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 North South Globalization and Foreign Direct Investment written by Jakob Schwab and published by Springer. This book was released on 2018-06-20 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: Jakob Schwab analyzes central mechanisms in the systematic economic interaction between rich and poor countries. He focuses on the drivers and effects of investment in developing countries and shows that predictions of standard economic analysis may turn around when accounting for peculiarities of North-South globalization. The author shows how endowments with educational skill levels may lead to complementarity between trade and capital inflows, how inflows of direct investment capital may hinder income growth in poor countries, and how the distributional effects of the presence of multinational enterprises are perceived differently in countries of different development structures.

Download or read book Essays on International Trade Capital Flows and Financial Frictions written by Maria Margarita Lopez Forero and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Two particular concerns in international economics motivate this research: I. How are real and financial activities related to each other in a globalized economy? II. What role do financial frictions play in this relationship ? Three essays look at these questions from different perspectives. The first chapter, in collaboration with Jean-Charles Bricongne and SebastianFranco-Bedoya, revises the old question on the relation between FDI and exports on French firms, where theory seems to be at odds with empirical findings. Most FDI and most trade take place between rich markets, where the horizontal investment type is expected to happen. In this sense, empirical studies have almost invariably found a complementarity relation while standard Horizontal FDI models predict substitutability between FDI and exports given the proximity-concentration trade-off. [...]The second chapter empirically examines how external financial needs measured at the sector level- and financial development at the country level interact to shape the aggregate marginal product of capital of a country (MPK) and its foreign direct investment inflows (FDI). First, using new available data we construct annual aggregate MPK for 50 developing and developed countries during 1995-2008; we use industry-level data to construct an annual country-level measure of external financial dependence and assess its effects on MPK conditional on the level of financial development. Our findings imply that financial development seems to be a necessary condition -and certainly not a sufficient one- in order for production in financially dependent sectors to positively affect aggregate MPK in developing countries. Second, using bilateral FDI inflows in developing countries between 2001 and 2010, we analyze how external financial dependence and financial development determine FDI in flows in developing countries. [...]The third chapter, joint research with Jean-Charles Bricongne and Fabrizio Coricelli, studies the transmission of global shocks during the Great Recession and its impact on French employment. Particularly, we explore the role of trade credit in the propagation of cross-border shocks. Using a sub-sample of importing enterprises that were active over 2004-2009,our findings imply that strong pre-crisis sourcing ties with countries that were more resilient to the global crisis, translated into better performance in terms of employment growth over 2008-2009. This effect dramatically varies with trade credit intensity. Strongly relying on trade credit made firms more vulnerable to unanticipated shocks, for which the adverse impact of the crisis was exacerbated. This effect intensified among firms with important sourcing ties with severely shocked countries. While the negative effect of the crisis was mitigated when sourcing relations with countries subject to milder shocks were stronger. Supporting, therefore, the hypothesis that trade credit was an alternative source of financing for enterprises during the crisis, where implicitly borrowing from suppliers helped importers overcoming financial constraints. Our contribution to the literature adds to the debate on the role of trade finance in explaining the real economic downturn across borders.

Download or read book Essays on International Reserves and Capital Flows written by Xingwang Qian and published by . This book was released on 2008 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Macroeconomic Effects of International Capital Flows written by Shibeshi Ghebre Kahsay and published by . This book was released on 2004 with total page 298 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Managing Global Money written by Graham Bird and published by Springer. This book was released on 1988-05-24 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: This collection of articles and papers has been organised under a limited number of specific themes in international financial economics, including balance of payment theory and policy, the activities of the IMF, Special Drawing Rights, the role of the private financial markets, and the international economic order. A unifying theme running through all the essays is that some degree of management of international financial affairs is desirable. The book has a strong policy orientation and should be of interest to students and practitioners of international financial economics alike.

Download or read book Essays on International Capital Flows Exchange Rates and Monetary Policy written by Di Giovanni, Julian Paul and published by Ann Arbor, Mich. : University Microfilms International. This book was released on 2004 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Poverty Prosperity and the World Economy written by Shahen Abrahamian and published by Springer. This book was released on 1995-08-14 with total page 266 pages. Available in PDF, EPUB and Kindle. Book excerpt: A distinguished group of international and development economists surveys the major issues in international development finance and trade. They are particularly concerned to consider the implications of trade and finance for global poverty and prosperity. The book includes an assessment of the life and work of Sidney Dell, in whose memory it has been written.

Download or read book Three Essays in International Economics written by Maxwell Oteng and published by . This book was released on 2002 with total page 342 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Trade Growth and Capital Mobility Across Countries written by Tzvetana Rakovski and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on the International Movements of Capital written by Carlos Leopoldo Sales-Sarrapy and published by . This book was released on 1992 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on International Capital Flows written by Naveen Seth and published by . This book was released on 2003 with total page 145 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on International Capital Flows written by Selen Sarisoy Guerin and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Current Situation of Capital Flows to Emerging Markets written by Dominik Hueller and published by GRIN Verlag. This book was released on 2014-12-08 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2014 in the subject Economics - International Economic Relations, grade: 1,0, University of Leipzig (Wirtschaftswissenschaftliche Fakultät), course: International Economics, language: English, abstract: The following essay will shortly define the key-terms Emerging-Market and Capital-Flows and subsequently show the historic development of Capital-Inflows to the defined countries. After the examination of the determinants of the International Capital Flows, the fourth part will deal with a topicality, the pending tampering of the US Federal Reserve’s Quantitative Easing and elaborate the consequences for the global capital-market situation.