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The probability of sudden stop of capital flows - the case of Albania

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  • Shijaku, Gerti

Abstract

The main goal of this paper is to develop a better understanding of international capital flows based on the episode of sudden stop concept. First, we compute a sudden stop indicator (or our binary variable) in order to analyze movements in foreign capital flows. Second, the probability of these episodes is estimated as a function of some economic fundamentals by running a probit estimation with quarterly data over the period 2004–2012.

Suggested Citation

  • Shijaku, Gerti, 2013. "The probability of sudden stop of capital flows - the case of Albania," MPRA Paper 79138, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:79138
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    References listed on IDEAS

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    Cited by:

    1. Shijaku, Gerti & Dushku, Elona, 2017. "Foreign reserve holdings: an extended study through risk-inspired motives," MPRA Paper 79199, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • 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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