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International capital flows to emerging markets: National and global determinants

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  • Byrne, Joseph P.
  • Fiess, Norbert

Abstract

Using a novel dataset for emerging markets, we empirically investigate the nature and determinants of aggregate and disaggregate capital inflows. We present formal statistical evidence of commonalities in capital inflows, with the strongest evidence for the level of equity and bank flows. Advanced economy long-run bond yields and commodity prices are identified as determinants of global capital flows. We also consider the national determinants of capital flows, finding that financial openness and institutions matter for country flows. Finally, we identify important commonalities in the volatility of bank inflows.

Suggested Citation

  • Byrne, Joseph P. & Fiess, Norbert, 2016. "International capital flows to emerging markets: National and global determinants," Journal of International Money and Finance, Elsevier, vol. 61(C), pages 82-100.
  • Handle: RePEc:eee:jimfin:v:61:y:2016:i:c:p:82-100
    DOI: 10.1016/j.jimonfin.2015.11.005
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    More about this item

    Keywords

    Capital flows; Emerging markets; Global factors; Idiosyncratic flows;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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