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Surges and reversals in capital flows

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  • Qureshi, Mahvash S.
  • Sugawara, Naotaka

Abstract

We examine the drivers of large cross-border capital flows in emerging and frontier market economies by adopting a new approach that characterizes capital flows into three categories: surges, normal flows, and reversals. Our results show that distinguishing between the different states of flows is important, and that global and domestic factors do not affect surge and reversal likelihood symmetrically. We also find that there are some differences in the factors associated with surges and reversals in emerging and frontier market economies.

Suggested Citation

  • Qureshi, Mahvash S. & Sugawara, Naotaka, 2018. "Surges and reversals in capital flows," International Review of Economics & Finance, Elsevier, vol. 56(C), pages 92-98.
    • Handle: RePEc:eee:reveco:v:56:y:2018:i:c:p:92-98
    DOI: 10.1016/j.iref.2018.03.020
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    Cited by:

    1. Mengting Zhang & Andreas Steiner & Jakob de Haan & Haizhen Yang, 2024. "Capital flow reversals and currency crises: Do capital flow types matter?," Review of International Economics, Wiley Blackwell, vol. 32(4), pages 1787-1823, September.
    2. Ahmet Ihsan Kaya & Lutfi Erden & Ibrahim Ozkan, 2022. "Detecting capital flow surges in developing countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3510-3530, July.
    3. Avdjiev, Stefan & Binder, Stephan & Sousa, Ricardo, 2021. "External debt composition and domestic credit cycles," Journal of International Money and Finance, Elsevier, vol. 115(C).
    4. Özmen, Erdal & Taşdemir, Fatma, 2024. "Globalisation and governance: Thresholds for the impacts of the main determinants of capital inflows?," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 168-176.
    5. Muhammad Imran & Abdul Rashid, 2023. "The Empirical Determinants of Foreign Direct Investment Episodes," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(3), pages 409-435, September.
    6. Deng, Chuang & Xie, Jingxuan & Zhao, Xiuyi, 2023. "Analysis of the impact of global uncertainty on abnormal cross-border capital flows," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 338-346.

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    More about this item

    Keywords

    Capital flows; Surges; Reversals; Emerging markets; Frontier markets;
    All these keywords.

    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

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