International Capital Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook International Capital Flows write by Martin Feldstein. This book was released on 2007-12-01. International Capital Flows available in PDF, EPUB and Kindle. 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.
International Capital Flows and Development
International Capital Flows and Development - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook International Capital Flows and Development write by Mr.Thierry Tressel. This book was released on 2010-10-01. International Capital Flows and Development available in PDF, EPUB and Kindle. 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.
International Capital Flows and the Lucas Paradox
International Capital Flows and the Lucas Paradox - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook International Capital Flows and the Lucas Paradox write by Muhammad Akhtaruzzaman. This book was released on 2019-06-21. International Capital Flows and the Lucas Paradox available in PDF, EPUB and Kindle. This book offers a comprehensive analysis of the debates on international capital flows, and presents a new evidence-based answer to the long-standing question of why capital doesn’t tend to flow from rich to poor countries as predicted by standard neoclassical theory – a puzzle known as the Lucas paradox. Further, the book reviews alternative approaches to conventional estimates of the marginal product of capital (MPK) and considers whether these estimates actually help us understand observed international capital flows. A rigorous quantitative approach is subsequently used to provide clear empirical evidence on the determinants of capital flows across borders. The findings of this empirical analysis suggest that generous economic policies on capital account convertibility are more influential than differences in institutional quality in terms of determining international capital flows. In closing, the relative importance of various types of political risk (e.g. expropriation and corruption) is examined. After determining that expropriation risk has one of the greatest effects on foreign direct investment (FDI), the book proposes an appealingly intuitive explanation for the lack of FDI flows to many capital-scarce developing countries.
International Capital Flows
International Capital Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook International Capital Flows write by Helen Popper. This book was released on 2016. International Capital Flows available in PDF, EPUB and Kindle. Empirical support for the conventional notion that short-term investment is hot money and direct investment is not: short-term investment appears to respond more dramatically to disturbances in other capital flows and in other countries than does direct investment.Chuhan, Perez-Quiros, and Popper examine the behavior of four major components of international capital flows in 15 developing and industrial countries.Striking differences in the behavior of the component flows arise in general specifications that allow the flows to interact. For example, in each country, the behavior of international short-term investment appears to be sensitive to changes in all the other types of international capital flows, including direct investment, but direct investment appears to be insensitive to such changes.Among the links across countries, there is further evidence that short-term investment is more sensitive than direct investment. A particularly telling example is found in the response to sudden changes in capital flows to Mexico. A disturbance in Mexican short-term investment appears to be transmitted quickly to the other Latin American countries studied. But there appears to be little response by those countries to a similar change in direct investment. This implies that only short-term investment suffers much from the tequila hangover.In finding that short-term investment appears to respond more dramatically to disturbances in other capital flows and in other countries than does direct investment, the authors provide empirical support for the conventional notion that short-term investment is hot money and direct investment is not.This paper - a product of the Development Data Group and the International Finance Division, International Economics Department - is part of a larger effort in the department to study the determinants of capital flows to developing countries.
Growth from International Capital Flows
Growth from International Capital Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Growth from International Capital Flows write by Antu Panini Murshid. This book was released on 2011-04-01. Growth from International Capital Flows available in PDF, EPUB and Kindle. Recent commentary has downplayed the growth dividend from international financial integration, highlighting the possibly negative correlation between capital inflows and long-run growth. This paper presents new evidence consistent with standard economic theory and a more benign interpretation of cross-border private capital flows. The key observation is that a country’s growth volatility changes over time. With volatility below a threshold, an inflow of foreign capital has promoted growth. However, during periods of volatile growth, more flows have been associated with slower growth. Volatility levels and changes reflect an interaction of domestic production and institutional structures with global factors.
