International Capital Flows

Author : Martin Feldstein
Publisher : University of Chicago Press
Page : 500 pages
File Size : 44,5 Mb
Release : 2007-12-01
Category : Business & Economics
ISBN : 9780226241807

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International Capital Flows by Martin Feldstein Pdf

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.

Author : Mr.Thierry Tressel,Dennis B. S. Reinhardt,Mr.Luca Antonio Ricci
Publisher : International Monetary Fund
Page : 46 pages
File Size : 53,6 Mb
Release : 2010-10-01
Category : Business & Economics
ISBN : 9781455209354

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International Capital Flows and Development by Mr.Thierry Tressel,Dennis B. S. Reinhardt,Mr.Luca Antonio Ricci Pdf

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.

Author : Barry J. Eichengreen
Publisher : MIT Press
Page : 396 pages
File Size : 42,8 Mb
Release : 2004
Category : Business & Economics
ISBN : 0262550598

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Capital Flows and Crises by Barry J. Eichengreen Pdf

An analysis of the connections between capital flows and financial crises as well as between capital flows and economic growth.

Author : Muhammad Akhtaruzzaman
Publisher : Springer
Page : 203 pages
File Size : 45,8 Mb
Release : 2020-08-14
Category : Business & Economics
ISBN : 9811390711

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International Capital Flows and the Lucas Paradox by Muhammad Akhtaruzzaman Pdf

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.

Author : Nina Pohl
Publisher : diplom.de
Page : 203 pages
File Size : 44,9 Mb
Release : 2000-09-01
Category : Political Science
ISBN : 9783832426415

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International Capital Flows: Economic Problems and Policy Implications by Nina Pohl Pdf

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 [...]

Author : National Research Council,Division of Behavioral and Social Sciences and Education,Commission on Behavioral and Social Sciences and Education,Committee on National Statistics,Panel on Foreign Trade Statistics
Publisher : National Academies Press
Page : 312 pages
File Size : 48,8 Mb
Release : 1992-02-01
Category : Political Science
ISBN : 9780309045902

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Behind the Numbers by National Research Council,Division of Behavioral and Social Sciences and Education,Commission on Behavioral and Social Sciences and Education,Committee on National Statistics,Panel on Foreign Trade Statistics Pdf

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.

Author : Nina Gillmann
Publisher : GRIN Verlag
Page : 210 pages
File Size : 45,5 Mb
Release : 2012-08-08
Category : Business & Economics
ISBN : 9783656980940

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International Capital Flows: Economic Impact and Policy Implications by Nina Gillmann Pdf

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.

Author : Mr.Harm Zebregs
Publisher : International Monetary Fund
Page : 29 pages
File Size : 51,5 Mb
Release : 1999-09-01
Category : Business & Economics
ISBN : 9781451854886

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Long-Term International Capital Movements and Technology by Mr.Harm Zebregs Pdf

This paper reviews the theoretical literature on the question of how long-term international capital movements depend on the international distribution of technology. It focuses on long-term investment flows, as these are more affected by international differences in technologies than short-term financial flows. International capital movements are investigated in the context of various technology specifications, ranging from models with only one common technology to those with multiple and endogenous technologies. The paper demonstrates that the theoretical specification of technology is crucial to the prediction of the size and direction of international capital movements.

Author : Ms.Linda S. Goldberg,Signe Krogstrup
Publisher : International Monetary Fund
Page : 58 pages
File Size : 42,9 Mb
Release : 2018-02-16
Category : Business & Economics
ISBN : 9781484341803

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International Capital Flow Pressures by Ms.Linda S. Goldberg,Signe Krogstrup Pdf

This paper presents a new measure of capital flow pressures in the form of a recast Exchange Market Pressure index. The measure captures pressures that materialize in actual international capital flows as well as pressures that result in exchange rate adjustments. The formulation is theory-based, relying on balance of payments equilibrium conditions and international asset portfolio considerations. Based on the modified exchange market pressure index, the paper also proposes the Global Risk Response Index, which reflects the country-specific sensitivity of capital flow pressures to measures of global risk aversion. For a large sample of countries over time, we demonstrate time variation in the effects of global risk on exchange market pressures, the evolving importance of the global factor across types of countries, and the changing risk-on or risk-off status of currencies.

Author : Youssef Cassis,Richard S. Grossman,Catherine Ruth Schenk
Publisher : Oxford University Press
Page : 561 pages
File Size : 50,8 Mb
Release : 2016
Category : Business & Economics
ISBN : 9780199658626

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The Oxford Handbook of Banking and Financial History by Youssef Cassis,Richard S. Grossman,Catherine Ruth Schenk Pdf

The financial crisis of 2008 aroused widespread interest in banking and financial history. In an attempt to better understand the magnitude of the shock, there was a demand for historical parallels. This volume provides the material for such a reflection by presenting the state of the art in banking and financial history. Contributions to this volume analyse banking and financial history in a long-term comparative perspective. Lessons drawn from these analyses may well help future generations of policy makers avoid a repeat of the financial turbulence that erupted in 2008.

Author : Punam Chuhan,Gabriel Perez-Quiros,Helen Popper
Publisher : World Bank Publications
Page : 36 pages
File Size : 53,9 Mb
Release : 1996
Category : Capital movements
ISBN : 8210379456XXX

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International Capital Flows by Punam Chuhan,Gabriel Perez-Quiros,Helen Popper Pdf

Author : Richard Portes,David Vines
Publisher : Commonwealth Secretariat
Page : 48 pages
File Size : 46,8 Mb
Release : 1997
Category : Business & Economics
ISBN : 0850925029

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Coping with International Capital Flows by Richard Portes,David Vines Pdf

Private capital flows to developing countries have increased dramatically. This book identifies key concerns about the sustainability and volatility of these flows, and makes a number of recommendations for national macroeconomics management, including crisis prevention measures. In addition there is an innovative proposal for the orderly workout of sovereign debt

Author : Miles Kahler
Publisher : Cornell University Press
Page : 284 pages
File Size : 47,6 Mb
Release : 2018-09-05
Category : Political Science
ISBN : 9781501731402

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Capital Flows and Financial Crises by Miles Kahler Pdf

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.

Author : Charles P. Kindleberger
Publisher : Cambridge University Press
Page : 116 pages
File Size : 42,5 Mb
Release : 1988-06-24
Category : Business & Economics
ISBN : 0521369843

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International Capital Movements by Charles P. Kindleberger Pdf

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.

Author : Dennis Reinhardt,Luca Antonio Ricci,Thierry Tressel
Publisher : Unknown
Page : 128 pages
File Size : 43,8 Mb
Release : 2013
Category : Electronic
ISBN : OCLC:851540702

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International Capital Flows and Development by Dennis Reinhardt,Luca Antonio Ricci,Thierry Tressel Pdf