Growth of international finance and emerging economies: Elements for an alternative approach
Carolina Alves and
Jan Toporowski ()
Additional contact information
Jan Toporowski: School of Oriental and African Studies
PSL Quarterly Review, 2019, vol. 72, issue 288, 3-26
This paper examines the increasing cross-border flows of capital involving developing and emerging economies in the past few decades. The discussion challenges the traditional economic theories based on net capital flows and deficits in current accounts to explain international borrowing by developing countries, and on the current account imbalances approach to explain financial crises. We argue that the increasing involvement of the private sector in developing countries external debt and the fact that the public sector, previously reliant almost entirely on official credit, has become able to access private debt markets, reflect the increasing integration of developing countries into the global financial system, and this process has particular features. A closer look at data on gross capital flows reveals that net capital flows neither explain nor capture this global financial integration.
Keywords: developing and emerging economies; private non-guaranteed (PNG) external debt; cross-border flows; financial globalisation (search for similar items in EconPapers)
JEL-codes: F3 F6 G1 G3 H6 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: Growth of international finance and emerging economies: Elements for alternative approach (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:psl:pslqrr:2019:11
Ordering information: This journal article can be ordered from
Access Statistics for this article
PSL Quarterly Review is currently edited by Alessandro Roncaglia and Carlo D'Ippoliti
More articles in PSL Quarterly Review from Economia civile
Bibliographic data for series maintained by Carlo D'Ippoliti ().