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 Transactions written by Mr.Norman S. Fieleke and published by International Monetary Fund. This book was released on 1993-12-01 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Some prominent economists and officials contend that government restrictions should be used to limit international capital movements that are considered destabilizing. This paper briefly summarizes the recent usage of such restrictions, discusses their international acceptance and their theoretical justification, reviews recent empirical studies of their efficacy, and examines their efficacy in Ireland, Spain, and Portugal during the latter part of 1992. The conclusion is that such restrictions typically have no more than fleeting and minor success in attaining their objectives.

Download or read book International Capital Movements written by Charles P. Kindleberger and published by Cambridge University Press. This book was released on 1988-06-24 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: First published in 1988, this study of international capital movements looks at their historical role in the financing of trade and their dramatically increased role in the world economy in recent years. It examines the current economic theory and the policy implications of these changes. Beginning with an analysis of the balance of payments, the authors goes on to discuss international short-term and long-term capital movements, both historically and with reference to current events. A further chapter deals with financial deregulation and the progression during the last few years towards the integration of international capital markets. The author looks forward to two possible futures for international finance: a gradual federalisation of macro-economic behaviour on a world basis, or a move towards self-reliance and autarky. The book is based on the author's Marshall Lectures, given in the University of Cambridge. It will be of interest to those studying international and financial economies, graduate students and those involved in the formulation of policy.

Download or read book Behind the Numbers written by National Research Council and published by National Academies Press. This book was released on 1992-02-01 with total page 312 pages. Available in PDF, EPUB and Kindle. Book excerpt: America's international economic decisions rest to a large degree on the information available to policymakers. Yet the quality of international trade and financial data is in serious doubt. This book reveals how our systems for collecting and analyzing trade data have fallen behind the times-and presents recommendations for new approaches to accuracy and usefulness of these economic data. The volume traces the burgeoning use of international economic data by public and private analysts at a time when the United States is becoming increasingly integrated into the world economy. It also points out problems of capturing new transactions, comparing data from different sources, limited access to the data, and more. This is the first volume to review all three types of U.S. international data-merchandise trade, international services transactions, and capital flows. Highlights include: Specific steps for U.S. agencies to take. Special analyses on improving the accuracy of merchandise trade data, filling data gaps on the fast-growing international services transactions, and understanding structural changes in world capital markets. Comments, complaints, and suggestions from an original survey of more than 100 key users of trade data. This practical volume will be invaluable to policymakers, government officials, business executives, economists, statisticians, and researchers.

Download or read book International Short term Capital Movements written by Charles P. Kindleberger and published by . This book was released on 1965 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Survey of Academic Literatureon Controls Over International Capital Transactions written by Mr.Michael P. Dooley and published by International Monetary Fund. This book was released on 1995-11-01 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.

Download or read book A Survey of Academic Literature on Controls Over International Capital Transactions written by Michael P. Dooley and published by . This book was released on 1995 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews recent theoretical and empirical work on controls over international capital movements. Theoretical contributions reviewed focus on 'second best' arguments for capital market restrictions as well as arguments based on multiple equilibria. The empirical literature suggests that controls have been 'effective' in the narrow sense of influencing yield differentials. But there is little evidence that controls have helped governments meet policy objectives, with the exception of reduction in the governments' debt service costs, and no evidence that controls have enhanced economic welfare in a manner suggested by theory.

Download or read book Global Capital Flows and Financing Constraints written by Ann E. Harrison and published by World Bank Publications. This book was released on 2002 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Firms often cite financing constraints as one of their primary obstacles to investment. Global capital flows, by bringing in scarce capital, may ease host-country firms' financing constraints. However, if incoming foreign investors borrow heavily from domestic basnks, direct foreign investment (DFI) may exacerbate financing constraints by crowding host country firms out of domestic capital markets. Combininb a unique cross-country firm-level panel with time-series data on restrictions on international transactions and capital flows, we find that different measures of global flows are associated with a reduction in firm-level financing constraints. First, we show that one type of capital inflow--DFI--is associated with a reduction in financing constraints. Second, we test whether restrictions on international transactions affect firms' financing constraints. Our results suggest that only one type of restriction--those on capital account transactions--negatively affect firms' financing constraints. We also show that multinational firms are not financially constrained and do not appear to be sensitive to the level of DFI. This implies that DFI eases financing constraints for non-multinational firms. Finally, we show that DFI only eases financing constraints in the non-G7 countries.

Download or read book International Capital Flows Economic Impact and Policy Implications written by Nina Gillmann and published by GRIN Verlag. This book was released on 2012-08-08 with total page 213 pages. Available in PDF, EPUB and Kindle. Book excerpt: Diploma Thesis from the year 2000 in the subject Economics - Finance, grade: 1, Christian-Albrechts-University of Kiel, language: English, abstract: This paper deals with three highly controversial aspects in the international finance literature: the degree of international financial integration, the economic impact of capital mobility, and the potential role of capital controls in the emerging international financial architecture. Regarding the first aspect, many observers have been influenced by the recent hype about “globalisation” and in fact take it for granted that capital markets have become almost fully integrated into a world financial marketplace. This paper, reviews evidence that challenges this conventional wisdom, though confirming that the degree of international financial integration is rising. With respect to the second aspect, it is demonstrated that there are circumstances under which the free flow of international capital could negatively impact upon economic performance and/or otherwise welfare-enhancing domestic policies. This finding conflicts with traditional theory and provides an economic rationale for the judicious introduction of capital controls. With this assertion in mind, the final aspect, the role of capital controls, is investigated. The specific question explored is how far restrictions on international capital flows are able to avert a costly economic imbalance arising from fluctuations in the balance of payments. Although the international consensus seems to have shifted in recent years towards promoting Chilean-style capital controls as a potential new building block in the international financial landscape, this paper cautions against such a generalisation of the Chilean experience. Rather, a review of the empirical literature suggests that much of Chile‘s economic success story in the last decade can be explained by factors other than its control regime. The rising degree of international financial integration enhances the need for small countries to resolve their dilemma of being dependent on external funding and, at the same time, most vulnerable to sudden reversals of international capital flows. Yet, simple solutions of how to counterbalance the potential threats of capital mobility in a second-best equilibrium, are not found to be easily forthcoming. In particular, this paper argues that capital controls are no panacea – even less so, if they delay necessary macro- and microeconomic reforms.

Download or read book International Capital Flows Economic Problems and Policy Implications written by Nina Pohl and published by diplom.de. This book was released on 2000-09-01 with total page 207 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inhaltsangabe:Abstract: This paper deals with three highly controversial aspects in the international finance literature: the degree of international financial integration, the economic impact of capital mobility, and the potential role of capital controls in the emerging international financial architecture. Regarding the first aspect, many observers have been influenced by the recent hype about globalisation and in fact take it for granted that capital markets have become almost fully integrated into a world financial marketplace. This paper, reviews evidence that challenges this conventional wisdom, though confirming that the degree of international financial integration is rising. With respect to the second aspect, it is demonstrated that there are circumstances under which the free flow of international capital could negatively impact upon economic performance and/or otherwise welfare-enhancing domestic policies. This finding conflicts with traditional theory and provides an economic rationale for the judicious introduction of capital controls. With this assertion in mind, the final aspect, the role of capital controls, is investigated. The specific question explored is how far restrictions on international capital flows are able to avert a costly economic imbalance arising from fluctuations in the balance of payments. Although the international consensus seems to have shifted in recent years towards promoting Chilean-style capital controls as a potential new building block in the international financial landscape, this paper cautions against such a generalisation of the Chilean experience. Rather, a review of the empirical literature suggests that much of Chile s economic success story in the last decade can be explained by factors other than its control regime. The rising degree of international financial integration enhances the need for small countries to resolve their dilemma of being dependent on external funding and, at the same time, most vulnerable to sudden reversals of international capital flows. Yet, simple solutions of how to counterbalance the potential threats of capital mobility in a second-best equilibrium, are not found to be easily forthcoming. In particular, this paper argues that capital controls are no panacea even less so, if they delay necessary macro- and microeconomic reforms. A worrying feature of the international financial system, partly due to continued innovations in financial engineering, is that [...]

Download or read book Determinants and Systemic Consequences of International Capital Flows written by Mr.Timothy D. Lane and published by International Monetary Fund. This book was released on 1991-04-15 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: The growing integration of capital markets has strengthened incentives for greater international coordination of economic and financial policies. Structural changes in these financial market, however, may have undermined the effectiveness of monetary and fiscal policy and complicated market access by developing countries. These are among the findings of this study of capital flows in the 1970s and the 1980s.

Download or read book Aspects of the Theory of International Capital Movements written by Carl Iversen and published by Taylor & Francis. This book was released on 1936 with total page 550 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book International Capital Markets written by John Eatwell and published by Oxford University Press. This book was released on 2002-04-18 with total page 493 pages. Available in PDF, EPUB and Kindle. Book excerpt: These papers provide a cutting-edge overview of general issues regarding world capital markets, experience in developing countries, and capital market regulation, which many economists believe could turn into the number one topic in international business and economics.

Download or read book International Capital Movements Under the Law of the International Monetary Fund written by Joseph Gold and published by . This book was released on 1977 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Globalization of International Financial Markets written by Hak-Min Kim and published by Routledge. This book was released on 2019-07-05 with total page 265 pages. Available in PDF, EPUB and Kindle. Book excerpt: First published in 1999, this volume investigates the causes and consequences of globalization of international financial markets, including all types of private sector capital for 121 countries over the period 1980-1990. This includes portfolio investment, bank capital and FDI. Hak-Min Kim identifies pronounced patterns in short-term capital flows along with effective means of stimulating capital, including the provision of new financial instruments, advanced telecommunication networks, and improved country risk management. Kim suggests that collective international efforts from organizations are necessary to develop financial markets and improve global equity.

Download or read book International capital flows and their impact on the Turkish economy written by Ahmet Çimenoğlu and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The 1990s witnessed a significant surge in international capital flows. However, unlike in the previous episodes of high capital mobility , not only developed countries but also developing countries were subject to international capital flows. Especially in the first half of 1990s, there has been a significant increase in capital flows to developing countries. However in 1997, the wave of crises that started in Mexico in 1994 spread to the South East Asian countries that were pinpointed as success stories, to Russia in 1998, to Brazil in 1999, to Turkey in 2000, and to Turkey and Argentina in 2001. All of these countries have been severely hit by this recent wave of crises. The increase in the frequency of crises in developing countries raised concerns about their relationship to capital flows. The purpose of this study is to investigate the effects of international capital flows on developing country economies, paying specific attention to Turkey .In doing so, first a brief history of the international capital flows has been presented, then discussions about the determinants of capital flows have been reviewed. In fact, international capital flows were quite mobile at the end of the 19th century.However, these flows almost disappeared after the World War 1. Capital flows started to increase among developed countries in the 1970s. However, the surge in capital flows in developing countries only became significant in the 1990s. The wave of liberalisation of capital accounts should be seen as complementary to liberalisation and deregulation of foreign trade and financial sectors. Following the developed countries that put in effect liberalisation process in the 1970s, developing countries started to implement similar policies, mostly at the suggestion of international financial institutions and developed country goverments. Although there are some minor differences from country to country , the general outline of the liberalisation episodes of. developing countries were quite similar. This outline was basically prepared by elements of the so-called Washington Consensus, mainly in the last two decades. These elements are the International Monetary Fund (IMF), World Bank, World Trade Organisation (WTO), American economic bureaucracy, and private think-tank institutions mostly based in Washington. The proposed process of liberalisation and integrati9n with the world financial markets was submitted to the developing countries that expressed their willingness to accept liberalisation and integration. The crises that many countries have been subject to in the 1990s were mainly classified as currency and banking sector crises. For this reason, understanding what exactly currency crises are, which mechanisms produce them, whether it is possible to foresee them, and what their effects are on macroeconomic variables need to be examined carefully. Moreover, the observation that the currency crises usually come along with banking crises raised concerns about the relationpship between the two, and a substantial literature on this issue emerged. Another important discussion is about the choice of the exchange rate regime and whether this choice is influential in instigating a crisis. The literature on these issues is presented in the third chapter of this study .These discussions are quite relevant for Turkey which is on the brink of implementing a new exchange rate and monetary policy . The last chapter of this study is devoted to the analysis of Turkey's experience with international capital flows. Until the 1990s, Turkey was almost completely isolated from international capital flows. Liberalisation of capital account transactions in 1989 can be regarded as the continuation of the liberalisation process that started in 1980 with the liberalisation of foreign trade, followed by gradual deregulation of financial markets. Through the effective implementation of capital account liberalisation in 1990, there has been an increase in international capital movements in Turkey .When capital flows in the 1990s are analysed, there are two features that distinguish Turkey from her peers. The first is that the net capital flows to Turkey , when measured as the share of capital flows in Gross National Product (GNP), were lower than those flowing to comparable developing countries. The second is that the volatility of the flows was higher in Turkey than in other developing countries, meaning that Turkey could not enjoy sustained net capital inflows in the 1990s. Another issue that has been investigated in this study is the degree of success Turkey had in integrating into the global financial markets. For this investigation, two methods that have been widely employed have been adopted to Turkey .These methods are testing whether the uncovered interest parity (UIP) holds for Turkey , and whether savings and investments are correlated in Turkey .In the first test, the rationale is to test whether the yields on similar assets in domestic and foreign markets do approach each other, as the theory predicts. The results of this test for Turkey indicate that the domestic and foreign interest rates on similar assets do not converge. The second test that has been conducted for Turkey is to check whether savings and investments are correlated. The rationale behind this test is that capital has the ability of searching for the highest yield and investing there, given that capital can flow freely across borders. Hence, savings generated in a specific country can be directed to somewhere else in the world, if investment there offers a higher yield than the country of origin. In other words, investment at home does not necessarily have to be financed by savings at home. The theory predicts that, if a country is successfully integrated into the international financial system, then there should be no correlation between her savings and investments. The tests that have been run for Turkey to check for this relationship yielded somewhat confusing results. Moreover, the lack of data to resolve the endogeneity problems inherent in this test forces one to be cautious in interpreting the results obtained. The results obtained from annual and quarterly data differ as well. While with the annual data it is not possible to argue that savings and investments are not correlated at any time in Turkey , with quarterly data, it is possible to argue that a correlation,between the two disappears after 1990. Roughly summarising .the results of the tests, it can be argued that investments and savings in Turkey exhibited a much stronger correlation before 1990, but this correlation weakened afterwards, just as the theory would predict. To sum up, Turkey made the necessary legal and regulatory changes in order to liberalise her capital account in 1990. This apparently increased the volume of international capital transactions in the 1990s. However, it is difficult to argue that Turkey successfully managed to completely integrate her financial system with global financial markets. The main reasons behind this are macroeconomic instability , underdeveloped financial markets, and working 'in a regulatory and supervisory environment that was too weak to help enhance the efficiency of the system. The final part of this study is devoted to the analysis of the effects of international capital flows on the Turkish economy .In order to analyse these effects, a simple framework has been used in which the channels through which capital inflows are transmitted to the domestic economy are determined. Afterwards, the existence of these channels has been tested using econometric techniques. The findings suggest that a surge in capital inflows firstly increases private sector consumption expenditures and then private sector investments. However, the increase in investment is directed more heavily to non-tradable sectors. This finding has far reaching implications on the process that leads to crises in Turkey .Increased investments in non-tradable sectors do not contribute to the foreign exchange earning capacity of the country .In times of crises, this turns into a major problem as the country faces significant capital outflows and eventually goes into a crisis accompanied by large current account deficits. Given the above process, in this study it is argued that the existence of international capital flows exacerbates the crisis thatTurkey faces. However, it does not mean that it is the ''capital inflows'' themselves that create the crisis. In fact, it is the handling of the foreign capital flows that triggers the crisis. The Turkish financial system was not, and in fact is still not, developed enough to damp down the excessive volatility in international capital flows. Moreover, most of the capital inflows that were relied upon in financing current account deficits were of short-term nature. In other words, Turkey relied mainly on short-term capital inflows in financing her current account deficits, with a domestic financial system that was not large and sophisticated enough to handle the potential difficulties associated with sudden capital inflow reversals. Even more importantly , successive governments over the last decade ignored the fact that these capital inflows might not be sustainable, and went on expanding the public sector deficits all through 1990s. Hence, given the above vulnerabilities, crises were inevitable.

Download or read book Report on the Measurement of International Capital Flows written by International Monetary Fund. Working Party on the Measurement of International Capital Flows and published by International Monetary Fund. This book was released on 1992-06-15 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Report evaluates statistical practices relating to the measurement of international capital flows. In particular, the principal sources of statistical descrepancies in the component categories of the capital account in the global balance of payments are addressed.