IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Capital flows to South Asian and ASEAN countries : trends, determinants, and policy implications

Listed author(s):
  • Husain, Ishrat
  • Kwang W. Jun
Registered author(s):

    The 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.

    If 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.

    File URL:
    Download Restriction: no

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 842.

    in new window

    Date of creation: 31 Jan 1992
    Handle: RePEc:wbk:wbrwps:842
    Contact details of provider: Postal:
    1818 H Street, N.W., Washington, DC 20433

    Phone: (202) 477-1234
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:842. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.