EconPapers    
Economics at your fingertips  
 

Net Capital Flows, Financial Integration, and International Reserve Holdings: The Recent Experience of Emerging Markets and Advanced Economies

Woon Gyu Choi, Sunil Sharma () and Maria Strömqvist

IMF Staff Papers, 2009, vol. 56, issue 3, 516-540

Abstract: The paper examines the link between net capital flows and international reserves emphasizing the external financing of reserve accumulation in the context of increasing international financial integration. The paper finds that the effect of net capital flows on reserve accumulation has shifted from negative to positive for emerging markets but not for advanced countries. The empirical results suggest that in recent years emerging markets, with concerns about sudden stops in capital flows, have rapidly built up reserves through external financing with net capital inflows, whereas the advanced countries, with more secure access to international finance, have balanced reserves accumulation with investments in higher-yielding foreign assets. IMF Staff Papers (2009) 56, 516–540. doi:10.1057/imfsp.2008.35; published online 17 February 2009

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.palgrave-journals.com/imfsp/journal/v56/n3/pdf/imfsp200835a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/imfsp/journal/v56/n3/full/imfsp200835a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:pal:imfstp:v:56:y:2009:i:3:p:516-540

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-31
Handle: RePEc:pal:imfstp:v:56:y:2009:i:3:p:516-540