Measuring and explaining the volatility of capital flows towards emerging countries

Carmen Broto (), Javier Díaz-Cassou and Aitor Erce-Dominguez ()

No 817, Banco de España 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: F21 F36 C22 C23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-opm and nep-tra
Date: 2008-09
View list of references View citations in EconPapers

Downloads: (external link)
http://www.bde.es/webbde/SES/Secciones/Publicacion ... o/08/Fic/dt0817e.pdf First version, September 2008 (application/pdf)

Related works:
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: http://EconPapers.repec.org/RePEc:bde:wpaper:0817

Access Statistics for this paper

More papers in Banco de España Working Papers from Banco de España
Contact information at EDIRC.
Series data maintained by María D. González. Electronic Dissemination of Information Unit. Research Department. Banco de España ().