Determinants of capital flows to emerging and advanced economies between 1990 and 2011

Grzegorz Tchorek , Michał Brzozowski , Paweł Śliwiński

Abstract

The previous and latest crises confirmed that stability of external financing of the economy is determined not only by the volume of capital inflow but also by its structure. It is established that a bias in gross external liabilities towards debt, especially short-term, may rise vulnerability to financial crises. Greater share of equity capital, mainly direct investment is not found to bear such financial risk. The results of Bayesian Model Averaging (BMA) show that influence of variables inherent in macroeconomic and portfolio approaches varies depending on the type of capital inflow and the group of countries. We also find some arguments that equity investment is a more desirable form of foreign capital because debt inflows are more responsive to global factors and therefore more volatile. As a word of caution, we highlight the need for diversification and careful monitoring of external financing sources and forms.
Author Grzegorz Tchorek - University of Warsaw (UW)
Grzegorz Tchorek,,
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, Michał Brzozowski - Uniwersytet Warszawski
Michał Brzozowski,,
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, Paweł Śliwiński (WGM / KFM)
Paweł Śliwiński,,
- Department of International Finance
Journal seriesPortuguese Economic Journal, ISSN 1617-982X, (A 15 pkt)
Issue year2017
Vol16
No1
Pages17-48
Publication size in sheets1.55
Keywords in EnglishCapital flows, FDI, Portfolio and banking capital flows, Push-pull factors
ASJC Classification2000 General Economics, Econometrics and Finance; 2002 Economics and Econometrics
DOIDOI:10.1007/s10258-016-0126-5
URL https://link.springer.com/article/10.1007/s10258-016-0126-5
Languageen angielski
Score (nominal)15
Score sourcejournalList
ScoreMinisterial score = 15.0, 23-03-2020, ArticleFromJournal
Publication indicators WoS Citations = 2; Scopus SNIP (Source Normalised Impact per Paper): 2017 = 0.46; WoS Impact Factor: 2017 = 0.4 (2) - 2017=0.413 (5)
Citation count*5 (2020-06-23)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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