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Sudden stops of international fund flows: Occurrence and magnitude

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  • Suxiao Li
  • Jakob de Haan
  • Bert Scholtens

Abstract

Using data of 65 economies from January 2000 (2008) to June 2015, we examine the covariates of sudden stops in fund equity and bond flows. Our results suggest that global, contagion and domestic factors are all related to the likelihood of sudden stops. For sudden stops in equity flows, global factors play a more important role in high‐income economies. For sudden stops in bond flows, global variables are the most important covariates in emerging economies, whereas domestic variables play a more important role in high‐income economies. We also find that global and contagion factors are correlated to the magnitude of sudden stops.

Suggested Citation

  • Suxiao Li & Jakob de Haan & Bert Scholtens, 2019. "Sudden stops of international fund flows: Occurrence and magnitude," Review of International Economics, Wiley Blackwell, vol. 27(1), pages 468-497, February.
  • Handle: RePEc:bla:reviec:v:27:y:2019:i:1:p:468-497
    DOI: 10.1111/roie.12385
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    File URL: https://doi.org/10.1111/roie.12385
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