Download or read book Sustainability of Private Capital Flows to Developing Countries written by Leonardo Hernández and published by World Bank Publications. This book was released on 1995 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Sustainability of Private Capital Flows to Developing Countries is a Generalized Reversal Likely written by Leonardo Hernández and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since 1989, private capital flows to a select group of developing countries have increased sharply, but developments in 1994 have caused concern about the sustainability of those flows. Several highly indebted developing countries that are implementing reform are concerned that a generalized reversal - similar to episodes of capital flight in the early 1980s - might disrupt their economies and threaten economic reform. Because the surge in private capital flows coincided with a period of low international interest rates and intensive policy reform in developing countries, debate has been active about whether the surge is driven mainly by domestic (pull) or external (push) factors. Under the pull hypothesis, successful domestic policies are the key to ensuring sustainable capital inflows; under the push hypothesis, an increase in international interest rates would cause a reversal of those flows (back to the industrial world). Using a partial adjustment model in which both domestic and external variables are defined, the authors explain why private capital flows to some developing countries but not to others (using panel data for 1986-93 for 22 countries). They argue that a generalized reversal is unlikely in countries that maintain a fundamentally sound macroeconomic environment. In fact, their empirical results show that domestic factors such as domestic savings and investment ratios significantly affected the recent surge in capital inflows. Further, they suggest that countries that have not received significant foreign capital - including countries in sub-Saharan Africa - could begin to if they implemented structural reforms that allow them to export, save, and invest at higher rates. Reducing their foreign debt (which might call for a continuation of recent debt reduction operations) could also help attract foreign private investors.
Download or read book Sustainability of private capital flows to developing countries written by Heinz P. Rudolph and published by . This book was released on 1995 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Interest Rates Credit and Economic Adjustment in Nicaragua written by Ulrich Lächler and published by World Bank Publications. This book was released on with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Do We Face a Global capital Shortage written by Zia Qureshi and published by World Bank Publications. This book was released on 1999 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: October 1995 A severe global capital squeeze and a big increase in global real interest rates (which some fear) are unlikely if industrial countries continue fiscal consolidation -- especially the reform of social security systems. Without such consolidation, global real interest rates could rise well above already high recent levels (about 4 percent), with adverse consequences for all countries. Qureshi assesses the medium- to long-term outlook for global demand and supply of capital. He reaches the following conclusions: * The demand for investment funds in developing countries will remain strong, but most increased demand will likely be met by domestic savings. Investment's share in GDP will probably rise in these countries, but so will savings' share, so their net claim on industrial countries' savings is likely to remain small. Of course, savings will not rise automatically. It is essential that policies, institutions, and the economic environment be conducive to saving. * Financial liberalization and integration of international capital markets will continue to give developing countries as a group improved access to private foreign capital. But whether specific countries attract and sustain such inflows will depend on their economic prospects and policies, including conditions that promote domestic saving and investment (to both attract foreign capital and help limit it to sustainable levels). Investment needs in developing countries are great, but effective demand for foreign capital will remain limited by the countries' perceived creditworthiness and viability. Despite the sharp rise in aggregate private capital flows to developing countries in the 1990s, only a dozen or so of them receive significant amounts of private capital. * Most low-income countries will continue to depend mainly on official capital for some time. But official capital will likely be increasingly scarce, so these countries must intensify their domestic resource mobilization and accelerate the policy reform needed to attract private investment. * The critical factor in alleviating pressure on global interest rates will be progress on fiscal consolidation in industrial countries, especially the reform of social security systems. Net capital flows from industrial to developing countries are much smaller than the budget deficits in industrial countries. In 1994, for example, lowering the industrial countries' budget deficit by about 20 percent would have freed up enough money to finance the entire net capital flow to developing countries. * International capital markets will tend to remain tight in the coming decade, but a severe global capital squeeze and a big increase in global real interest rates (which some fear) are unlikely if industrial countries continue fiscal consolidation. Without such consolidation, global real interest rates could rise well above already high recent levels of about 4 percent, with adverse consequences for all countries. This paper -- a product of the International Economic Analysis and Prospects Division, International Economics Department -- is part of a larger effort in the department to analyze major trends and issues in the global economic outlook and their implications for developing countries.
Download or read book Financial Liberalization and the Capital Account written by Pedro Alba and published by World Bank Publications. This book was released on 1999 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thailand's economic crisis in 1997 was fundamentally one of private sector debt, rooted in private behavior that affected the magnitude and composition of investment and how it was financed. Thailand's crisis provides further evidence that financial liberalization must be carefully managed because, by increasing competition, it lowers the franchise value of existing financial institutions and creates incentives for unsound banking practices.
Download or read book Private Capital Flows to Developing Countries written by and published by World Bank Publications. This book was released on 1997 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyzes the process of international financial integration and the structural forces driving private capital to developing countries. Against this background, it details the potential benefits of integration and the implications of fast-moving global capital flows for emerging economics. Examining the experience of countries that have attracted substantial private capital flows, the book provides invaluable guidance as to what works and what doesn't during the transition to financial integration. It will be of compelling interest to policymakers and also to international investors and bankers, financial analysts, and researchers.
Download or read book Risk Management and Corporate Governance written by Abol Jalilvand and published by Routledge. This book was released on 2013-05-13 with total page 496 pages. Available in PDF, EPUB and Kindle. Book excerpt: The asymmetry of responsibilities between management and corporate governance both for day-to-day operations and the board’s monthly or quarterly review and evaluation remains an unresolved challenge. Expertise in the area of risk management is a fundamental requirement for effective corporate governance, if not by all, certainly by some board members. This means that along with board committees such as "compensation", "audit", "strategy" and several others, "risk management" committees must be established to monitor the likelihood of certain events that may cause the collapse of the firm. Risk Management and Corporate Governance allows academics and practitioners to assess the state of international research in risk management and corporate governance. The chapters overlay the areas of risk management and corporate governance on both financial and operating decisions of a firm while treating legal and political environments as externalities to decisions undertaken.
Download or read book Employment and Wage Effects of Trade Liberalization written by Ana Revenga and published by World Bank Publications. This book was released on 1999 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: October 1995 Cuts in Mexico's tariff levels were associated with a slight decline in employment in Mexico and with increases in average wages (perhaps reflecting improved productivity in the reformed industries and a shift toward the use of more skilled workers). The wages and employment of skilled production workers were significantly more responsive to changes in protection levels than those of nonproduction workers. In 1985, after decades of an import-substitution industrial strategy, Mexico initiated a radical liberalization of its external sector. Between 1985 and 1988, import licensing requirements were scaled back to a quarter of earlier levels, reference prices were removed, and tariff rates on most products were substantially reduced. By 1989, Mexico was one of the most open economies in the developing world. Adjusting to trade liberalization required the reallocation of resources between sectors and entailed substantial dislocation of workers. Revenga analyzes how Mexico's trade liberalization (1985 - 87) affected employment and wages in industry, focusing on how it affected average employment and earnings rather than on the link between trade and relative wages. She examines the tradeoff between wage and employment adjustment, identifies which labor groups benefited more from liberalization, and tries to associate changes in employment and wages directly with measures of change in trade protection, rather than link them to changes in imports and exports (which is more common). She finds that reductions in quota coverage and tariff levels are associated with moderate reductions in firm-level employment. A 10-point reduction in tariff levels (between 1985 and 1990) is associated with a 2- to 3-percent decline in employment in Mexico. Changes in quota coverage appear to have no discernible effect on wages, but reductions in tariff levels are associated with increases in average wages. This seems to reflect improved productivity in the reformed industries, which may be related to a shift toward the use of more skilled workers. There seems to have been a slight shift in the skill mix in favor of nonproduction workers. This was paralleled by a sharper increase in the wage differential between skilled and unskilled workers. The wages and employment of skilled production workers were significantly more responsive to changes in protection levels than those of nonproduction workers -- perhaps partly because production workers were more heavily concentrated in the industries in which protection levels were greatly reduced. This paper -- a product of the Country Operations Division 1, Latin America and the Caribbean, Country Department II -- was prepared for the World Bank labor markets workshop held in July 1994.
Download or read book Extending the Eclectic Paradigm in International Business written by H. Peter Gray and published by Edward Elgar Publishing. This book was released on 2003-04-28 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt: John Dunning is undoubtedly the world's leading scholar on the subject of multinational corporations and international business. This collection of original essays is designed to honor this work, particularly his achievements during his association with Rutgers University.
Download or read book World Bank Research Program written by World Bank and published by . This book was released on 1996 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Does More for the Poor Mean Less for the Poor written by Jonah B. Gelbach and published by World Bank Publications. This book was released on 1995 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Capital Flows to Central and Eastern Europe and the Former Soviet Union written by Stijn Claessens and published by World Bank Publications. This book was released on 1998 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: September 1998 Foreign direct investment and, more recently, short-term debt and portfolio flows have become important parts of private capital flows to Central and Eastern Europe and the former Soviet Union. Private flows have increased in response to reform efforts, the buildup of reserves, and prospective membership in the European Union. Private capital flows to Central and Eastern Europe and the former Soviet Union have taken off in recent years. Foreign direct investment was the most important such flow from 1991-97, but since 1993 short-term debt and portfolio flows have also been important. The increase in these potentially more volatile short-term flows raises some questions about sustainability and vulnerability. Perhaps more than in other developing countries, reform efforts appear to be the most important determinant of private flows to the region. Private flows also have responded positively to the buildup of reserves (a proxy for improvements in perceived creditworthiness) and to prospective membership in the European Union (reflecting greater economic integration with the West and a greater commitment to reform). Official flows have been associated with the financing of fiscal deficits and appear to have led, rather than followed, countries' reform efforts. This paper-a joint product of the Economic Policy Division, Poverty Reducation and Economic Management Network; and the Poverty Reduction and Economic Management Sector Unit, Europe and Central Asia Region-was prepared for the National Bureau for Economic Research study, Capital Flows to Emerging Markets, organized by Sebastian Edwards. The authors may be contacted at [email protected] or [email protected].
Download or read book Are Private Capital Flows to Developing Countries Sustainable written by Uri Dadush and published by . This book was released on 1994 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Gross Private Capital Flows to Emerging Markets written by Erlend Nier and published by International Monetary Fund. This book was released on 2014-10-27 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses empirically the key drivers of private capital flows to a large sample of emerging market economies in the last decade. It analyzes the effect of the global financial cycle, measured by the VIX, on capital flows and investigates the role of fundamentals and country characteristics in mitigating or amplifying its effect. Using interaction models, we find the effect of the VIX to be non-linear. For low levels of the VIX, capital flows are driven by fundamental factors. During periods of stress, the VIX becomes the dominant driver of capital flows while other determinants, with the exception of interest rate differentials, lose statistical significance. Our results also suggest that the effect of global financial conditions on gross private capital flows increases with the host country’s level of financial sector development. Finally, our results imply that countries cannot fully insulate themselves from global financial shocks, unless creating a fragmented global financial system.
Download or read book Opportunities and Risks in Central European Finances written by and published by World Bank Publications. This book was released on 2000-01-01 with total page 386 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent emerging market crises in Asia and other regions suggests that while international capital inflows can make recipient economies stronger, they can potentially also increase the vulnerability of these economies to financial market crises. Two of the most notable sources of vulnerability are the quality of domestic financial intermediation and the speculative nature of some investment flows. 'Opportunities and Risks in Central European Finances' examines the nature of capital flows in the region, seeking to explain its dynamics, and potential sources of vulnerability. The book also appraises some potential costs that could be associated with a financial crisis. Finally, it presents views on how to manage these risks more effectively.
Download or read book Political Economy of International Monetary Interdependence written by Rameshwar Tandon and published by . This book was released on 2007 with total page 476 pages. Available in PDF, EPUB and Kindle. Book excerpt:
