Capital flows to South Asian and ASEAN countries : trends, determinants, and policy implications
AbstractThe authors compare the experiences of selected Asian countries in attracting different forms of external financing and examine how that financing has contributed to growth. They carry out the analysis for two subgroups - South Asian and ASEAN countries - with distinctly different dominant forms of capital flows. After reviewing recent trends in financial flows to individual countries, they perform a statistical analysis of the effects of foreign capital flows on the macroeconomic performance of developing countries in the region. They find that foreign direct investment has been a more significant positive factor than other types of resource flows in shaping the economic growth of ASEAN countries. Substantial increases in ODA flows are unlikely, and so is the resumption of significant bank lending, so policy makers in South Asia should pursue policies and nondistortionary incentive systems conducive to the infusion of foreign direct investment flows. The main findings are consistent with the Bank's emphasis on an increasingly important role for the private sector - and direct investment flows - in development. A focus on foreign direct investment is appropriate, given current constraints on external financing, particularly through traditional bank credits.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 842.
Date of creation: 31 Jan 1992
Date of revision:
Economic Theory&Research; Banks&Banking Reform; International Terrorism&Counterterrorism; Environmental Economics&Policies; Financial Intermediation;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Daveri, Francesco, 1995. "Costs of entry and exit from financial markets and capital flows to developing countries," World Development, Elsevier, vol. 23(8), pages 1375-1385, August.
- Fry, Maxwell J., 1996. "How foreign direct investment in Pacific Asia improves the current account," Journal of Asian Economics, Elsevier, vol. 7(3), pages 459-486.
- Goldstein, Morris, 1995. "Coping with too much of a good thing : policy responses for large capital inflows in developing countries," Policy Research Working Paper Series 1507, The World Bank.
- Jansen, Karel, 1995. "The macroeconomic effects of direct foreign investment: The case of Thailand," World Development, Elsevier, vol. 23(2), pages 193-210, February.
- Chuhan, Punam & Claessens, Stijn & Mamingi, Nlandu, 1998. "Equity and bond flows to Latin America and Asia: the role of global and country factors," Journal of Development Economics, Elsevier, vol. 55(2), pages 439-463, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.