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Determinants of capital inflows into Asia: The relevance of contagion effects as push factors

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  • Brana, Sophie
  • Lahet, Delphine

Abstract

This article investigates the impacts of both external factors and domestic fundamentals on the evolution of capital inflows with a panel of four Asian countries over the 1990-2007 period. The objective is to test contagion variables, as defined by Masson (1999), as push factors in order to complete push factor literature and to secure a more integrated point of view of the determinants of capital inflows. Tests show that both push and pull factors are significant. Push factors as carry trade strategies, global liquidity and contagion factors, seem to be major determinants of capital inflows into Asia.

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Bibliographic Info

Article provided by Elsevier in its journal Emerging Markets Review.

Volume (Year): 11 (2010)
Issue (Month): 3 (September)
Pages: 273-284

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Handle: RePEc:eee:ememar:v:11:y:2010:i:3:p:273-284

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Web page: http://www.elsevier.com/locate/inca/620356

Related research

Keywords: Push factors Carry trade Risk aversion Asia Contagion;

References

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Citations

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Cited by:
  1. Wasseem Mina, 2013. "Beyond FDI: The Influence of Bilateral Investment Treaties on Debt," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1325, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  2. repec:laf:wpaper:201107 is not listed on IDEAS
  3. Sophie Brana & Delphine Lahet, 2011. "Foreign Banks and the Stability of Foreign and Domestic Credit in CEECs," Larefi Working Papers 1107, Larefi, Université Bordeaux 4.
  4. Diego Bastourre & Jorge Carrera & Javier Ibarlucia & Mariano Sardi, 2012. "Common Drivers in Emerging Market Spreads and Commodity Prices," BCRA Working Paper Series 201257, Central Bank of Argentina, Economic Research Department.
  5. Walid, Chkili & Chaker, Aloui & Masood, Omar & Fry, John, 2011. "Stock market volatility and exchange rates in emerging countries: A Markov-state switching approach," Emerging Markets Review, Elsevier, vol. 12(3), pages 272-292, September.
  6. Bruno Bonizzi, 2013. "Capital Flows to Emerging Markets: An alternative Theoretical Framework," Working Papers 186, Department of Economics, SOAS, University of London, UK.

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