Covid-19 and capital flows: The responses of investors to the responses of governments

Stefan Goldbach and Volker Nitsch

No 242, Darmstadt Discussion Papers in Economics from Darmstadt University of Technology, Department of Law and Economics

Abstract: This paper examines the effect of national government response measures to Covid-19 on German international capital flows. Analyzing highly disaggregated monthly data from the German balance of payments statistics over the period from January 2019 through January 2021, we find that bilateral financial interactions are negatively affected by stricter containment and closure policies as well as health system policies of a partner country, while German capital flows benefit from a partner's economic support policies. Moreover, to the extent that public interventions to fight the pandemic affect financial interactions, the adjustment mainly takes place along the intensive margin.

Keywords: coronavirus; pandemic (search for similar items in EconPapers)
JEL-codes: F36 F60 I18 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ifn and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/247316/1/1778023614.pdf (application/pdf)

Related works:
Journal Article: Covid-19 and Capital Flows: The Responses of Investors to the Responses of Governments (2022)
Working Paper: Covid-19 and Capital Flows: The Responses of Investors to the Responses of Governments (2021)
Working Paper: Covid-19 and Capital Flows: The Responses of Investors to the Responses of Governments (2021)
Working Paper: Covid-19 and capital flows: He responses of investors to the responses of governments (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:darddp:242

DOI: 10.26083/tuprints-00019880

Access Statistics for this paper

More papers in Darmstadt Discussion Papers in Economics from Darmstadt University of Technology, Department of Law and Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().