EconPapers    
Economics at your fingertips  
 

Capital flows to emerging market economies: A brave new world?

Shaghil Ahmed and Andrei Zlate ()

Journal of International Money and Finance, 2014, vol. 48, issue PB, 221-248

Abstract: We examine the determinants of net private capital inflows to emerging market economies (EMEs) since 2002. Our main findings are: First, growth and interest rate differentials between EMEs and advanced economies and global risk appetite are statistically and economically important determinants of net private capital inflows. Second, there have been significant changes in the behavior of net inflows from the period before the recent global financial crisis to the post-crisis period, especially for portfolio inflows, partly explained by the greater sensitivity of such flows to interest rate differentials since the crisis. Third, capital controls introduced in recent years do appear to have discouraged both total and portfolio net inflows. Finally, we find positive effects of unconventional U.S. monetary policy on EME inflows, especially portfolio inflows. Even so, U.S. unconventional policy is one among several important factors influencing flows.

Keywords: Emerging market economies; Capital flows; Capital controls; Unconventional U.S. monetary policy (search for similar items in EconPapers)
JEL-codes: F3 E5 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (195) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261560614000928
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Capital flows to emerging market economies: a brave new world? (2013) Downloads
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:eee:jimfin:v:48:y:2014:i:pb:p:221-248

DOI: 10.1016/j.jimonfin.2014.05.015

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-07-05
Handle: RePEc:eee:jimfin:v:48:y:2014:i:pb:p:221-248