Analysis of Determinants of Foreign Capital Flow: Focused on Interest Rate and Exchange

Deok Ryong Yoon (), Wonho Song () and Jinhee Lee ()
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Deok Ryong Yoon: KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP), Postal: [30147] Building C Sejong National Research Complex 370 Sicheong-daero Sejong-si Korea, https://www.kiep.go.kr/eng/
Jinhee Lee: KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP), Postal: [30147] Building C Sejong National Research Complex 370 Sicheong-daero Sejong-si Korea, https://www.kiep.go.kr/eng/

No 21-26, World Economy Brief from Korea Institute for International Economic Policy

Abstract: As the linkage between domestic and foreign financial markets grows stronger, concerns have been raised about the inflow and outflow of foreign investment capital as a source of financial instability whenever the financial market becomes unstable. Considering that opening the capital market is not an option, it becomes essential to examine the determinants of foreign investment to maximize the benefits of foreign capital inflows and outflows for sound growth in the real sector as well as the financial sector. Accordingly, this study attempts to produce evidence-based policy implications by empirically analyzing the determinants of the inflow and outflow of foreign investment funds.

Keywords: foreign; capital flow; interest rate; exchange; capital market (search for similar items in EconPapers)
Pages: 7 pages
Date: 2021-05-31
New Economics Papers: this item is included in nep-cfn and nep-cwa
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:kiepwe:2021_026

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