Corpus ID: 14250056

Determinants of Capital Flows: A Cross-Country Analysis

  title={Determinants of Capital Flows: A Cross-Country Analysis},
  author={Mukesh Ralhan},
There are two basic approaches to identifying the determinants of capital flows, viz. the traditional and the portfolio (or modern) approach. Although most econometric models have by now forsaken the traditional capital flow equations in favour of modelling financial linkages via arbitrage type interest rate parity relations, the importance of fundamentals in explaining particular capital flow developments cannot be denied (International Monetary Fund, 1992). This paper identifies the… Expand

Tables from this paper

The Determinants Of Capital Flight: Evidence From MENA Countries
This paper examines the determinants of capital flight in seven Middle East and North Africa (MENA) countries during the period of 1981-2008. The results are robust to four econometrics techniques:Expand
Determinants of Capital Flows into Nigeria: An Autoregressive-Distributed Lag (ARDL) Approach
The rate of capital flows into the emerging markets is alarming and has become a subject of debate in the literature. It is mostly believed that capital flows are beneficial to the economies of theExpand
Portfolio Capital Flows in Thailand: A Bayesian Model Averaging Approach
We study the gross and net terms of portfolio capital flows by examining their determinants. Through the application of the Bayesian model averaging method, the determinants are evaluated by a set ofExpand
Dynamics Of Private Capital Flows To India: A Structural VAR Approach
ABSTRACT:India started adopting the policies of liberalization and globalization in 1990s and since then it has attracted large amount of private capital flows. With increased magnitude, privateExpand
India’s External Commercial Borrowing: Trends, Composition, and Determinants
With the turn of the century, external commercial borrowings (ECB) has assumed prominence in India’s capital account and evolved as a preferred medium of overseas borrowing of select corporates. ItExpand
Investments and Long-term Real Interest Rate in Poland : Study of Investment Structure, Current Account and their Correlation with Long-term Real Interest Rates
One of the effects of the globalization of financial markets is unhampered international capital flows that can be freely reallocated amongst different countries. Considering that the investor’s aimExpand
Impact of interest rate differentials on Net foreign institutional investment (FIIs) in India
This paper examines the effect of interest rate differential on net capital flows to India by taking net foreign institutional investments as proxy for capital flow. Monthly data from April, 2005 toExpand
Economic growth effect of private capital inflows: a structural VAR approach for Nigeria
  • F. Anetor
  • Economics
  • Journal of Economics and Development
  • 2019
Purpose The purpose of this paper is to examine the effect of shocks in the various components of private capital inflows on economic growth in Nigeria using quarterly data in the periodExpand
Direct Foreign Investment (FDI) has been considered as one of the important strategies in long-term economic development. FDI is seen not only as a capital transfer but also has an important effectExpand
Foreign Direct Investment and Economic Growth: Evidence from Malaysia
The objective of this paper is to examine the relationship of foreign direct investment on real gross domestic product in Malaysia using annually data from1971 until 2010. VAR model withExpand


Determinants and Systemic Consequences of International Capital Flows
The growing integration of capital markets has strengthened incentives for greater international coordination of economic and financial policies. Structural changes in these financial market,Expand
The balance of payments constraint, capital flows and growth rate differences between developing countries
THIS paper starts from the proposition that for most countries the major constraint on the rate of growth of output is likely to be the balance of payments position because this sets the limit to theExpand
Transmission of Real and Monetary Disturbances under Fixed and Floating Exchange Rates
The world economy since the 19th century has been characterized by varying degrees of interdependence. In the pre-World War I world, individual economies to a great extent were exposed to economicExpand
An Efficient Method of Estimating Seemingly Unrelated Regressions and Tests for Aggregation Bias
Abstract In this paper a method of estimating the parameters of a set of regression equations is reported which involves application of Aitken's generalized least-squares [1] to the whole system ofExpand
The role of money and monetary policy
HE DEVELOPMENT of monetary analysis in the past decade has intensified the debate concerning the role of money and monetary policy. Extensive research fostered critical examinations of the FederalExpand
Learning and Practicing Econometrics
The Bayesian Approach to Estimation and Inference: Some Basic Definitions, Concepts, and Applications for Economists explores the Bayesian approach to estimation andference. Expand
............................................................................................................................................ 1 1. GLOBALIZATION AND ECONOMIC PERFORMANCEExpand
Foreign Investment in India: Policy Issues, Trends and Prospects', Reserve Bank of India Occasional Papers
  • Foreign Investment in India: Policy Issues, Trends and Prospects', Reserve Bank of India Occasional Papers
  • 1997
Capital Flows into Latin America: Stronger Than Ever
Determinants of Private Direct Investment in Latin America: Strategic Implications
  • International Journal of Management
  • 1996