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Too Much, Too Little, or Too Volatile? International Capital Flows to Developing Countries in the 1990s

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  • Nunnenkamp, Peter

    (Kiel Institute of World Economics)

Abstract

Developing countries are constrained in financing current account deficits as real capital mobility is still far from perfect. At the same time, capital flows to these countries proved to be extremely volatile. The paper argues that the long-term problem of "too little" should not be confused with the short-term problem of "too volatile". The former is related to sovereign risk, which may be difficult to overcome. The latter could be kept within limits by financial restructuring towards relatively stable types of capital flows.

Suggested Citation

  • Nunnenkamp, Peter, 2001. "Too Much, Too Little, or Too Volatile? International Capital Flows to Developing Countries in the 1990s," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 5(1), pages 119-147, June.
    • Handle: RePEc:ris:eaerev:0245
    DOI: 10.11644/KIEP.JEAI.2001.5.1.79
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    Cited by:

    1. Nunnenkamp , Peter, 2002. "Targeting Aid: What the World Bank Has (Not) Achieved," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 6(1), pages 87-111, June.
    2. Jungnickel, Rolf, 2004. "German FDI in Latin America and Caribbean in the wake of the crisis," HWWA Reports 249, Hamburg Institute of International Economics (HWWA).
    3. Jungnickel, Rolf, 2004. "German FDI in Latin America and Caribbean in the Wake of the Crisis," Report Series 26069, Hamburg Institute of International Economics.
    4. Nunnenkamp, Peter, 2006. "Comment on: "Chances and Limits of South-South Monetary Coordination" by Jan Kregel," Open Access Publications from Kiel Institute for the World Economy 18040, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    Keywords

    International Capital Markets; Developing Countries; Debt; Equity Investment; Sovereign Risk; Volatility;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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