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International Capital Flows to Emerging and Developing Countries: National and Global Determinants

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  • Byrne, Joseph P.
  • Fiess, Norbert

Abstract

This paper examines international capital flows to emerging and developing countries. We assess whether commonalities exist, the permanence of shocks to commonalities and their determinants. Also, we consider individual country coherence with global capital flows and we measure the extent of co-movements in the volatility of capital flows. Our results suggest there are commonalities in capital inflows, although aggregate or disaggregate capital flows respond differently to shocks. We find that the US long run real interest rate is an important determinant of global capital flows, and real commodity prices are relevant but to a lesser extent. We also find a role for human capital in explaining why some countries can successfully ride the wave of financial globalisation.

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Paper provided by Scottish Institute for Research in Economics (SIRE) in its series SIRE Discussion Papers with number 2011-03.

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Date of creation: 2011
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Handle: RePEc:edn:sirdps:245

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Keywords: Capital Flows; Emerging Markets; Developing Countries; Global Factors;

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Cited by:
  1. Fernando Arias & Daira Garrido & Daniel Parra & Hernán Rincón, 2012. "¿Responden los diferentes tipos de flujos de capitales a los mismos fundamentos y en el mismo grado? Evidencia reciente para países emergentes," BORRADORES DE ECONOMIA 009764, BANCO DE LA REPÚBLICA.

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