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Portfolio Flows, Foreign Direct Investment, Crises

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Author Info
Merih Uctum () (Economics Brooklyn College and the Graduate Center, City University of New York)
Remzi Uctum

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Abstract

The goal of the paper is to analyze how financial and economic crises affect the relation between capital flows and their determinants. We develop a model of foreign portfolio investment (FPI) and foreign direct investment (FDI), and apply it to Turkey using an endogenous break analysis and accounting for country risk. We identify two breakpoints that correspond to two crises dates. Our results show changes in the sign and/or coefficient of a number of determinants in both types of investment and thus suggest that analyses based on the assumption of parameter constancy may lead to misleading results.

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Publisher Info
Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2005 with number 224.

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Date of creation: 11 Nov 2005
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Handle: RePEc:sce:scecf5:224

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Related research
Keywords: capital flows crises structural changes

Find related papers by JEL classification:
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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    Other versions:
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    Other versions:
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  20. repec:cup:etheor:v:13:y:1997:i:3:p:315-52 is not listed on IDEAS
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    Other versions:
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    Other versions:
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