 Globalisation and governance: Thresholds for the impacts of the main determinants of capital inflows?Erdal Özmen and Fatma Taşdemir International Review of Economics & Finance, 2024, vol. 92, issue C, 168-176 Abstract: This paper investigates whether the impacts of the main push (global financial conditions, GFC) and pull (growth) factors on capital inflows are invariant to endogenously estimated threshold levels for structural domestic conditions (SDC) represented by governance, trade openness, de facto international financial integration and de jure financial openness in emerging market and developing economies. Our results strongly suggest that, for all the components of capital inflows, the impact of the domestic pull factor is substantially much higher for the episodes of better governance, higher trade, de jure financial openness and de facto international financial integration. The sensitivity of non-FDI and aggregate inflows to GFC tends to be considerably higher for the episodes of better SDC. FDI inflows are found to be basically determined by the domestic pull factor across all these regimes. The impact of GFC on FDI inflows appears not to considerably change across the SDC. Keywords: Capital inflows; Developing and emerging economies; Financial openness; Global financial conditions; Governance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:92:y:2024:i:c:p:168-176 DOI: 10.1016/j.iref.2024.02.025 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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