Measuring and explaining the volatility of capital flows towards emerging countries

Carmen Broto, Javier Díaz-Cassou and Aitor Erce

No 817, Working Papers from Banco de España

Abstract: This paper analyzes the determinants of the volatility of different types of capital inflows to emerging countries. After calculating a variable that proxies capital flows volatility, we study its possible causality relations with a set of explanatory variables by type of flow through a panel data model. We show that in recent years the significance of global factors, beyond the control of emerging economies, has increased at the expense of that of country specific factors. In addition, various factors exhibit a non-robust effect on the volatility of the three different categories of capital flows, which poses additional challenges for policy-makers.

Keywords: capital fl ows; volatility; panel data; emerging markets (search for similar items in EconPapers)
JEL-codes: C22 C23 F21 F36 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2008-09
New Economics Papers: this item is included in nep-cba, nep-opm and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:0817

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