EconPapers    
Economics at your fingertips  
 

Dynamic effects of macroeconomic policies on categories of emerging markets’ capital inflows

Adugna Olani

Macroeconomics and Finance in Emerging Market Economies, 2020, vol. 13, issue 1, 1-28

Abstract: Using panel and country-specific structural vector autoregressions, this paper analyzes the dynamic and size effects of the US monetary policy shock as well as domestic monetary and exchange rate shocks on gross foreign direct and portfolio investment inflows to emerging markets. While the effects of macroeconomic policy shocks are heterogeneous across countries, foreign direct investment inflow’s response to macroeconomic policy shocks is weak in contrast to the strong and on impact response of foreign portfolio investment. Structural vector autoregressions provide richer dynamic structure and a clearer comparison of ‘push’ and ‘pull’ factors in financial flows via forecast error variance decomposition. This paper does not find evidence for ‘push’ factors’ dominance in either capital inflow type or across the countries.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1080/17520843.2019.1699133 (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:taf:macfem:v:13:y:2020:i:1:p:1-28

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/REME20

DOI: 10.1080/17520843.2019.1699133

Access Statistics for this article

Macroeconomics and Finance in Emerging Market Economies is currently edited by Subrata Sarkar and Ashima Goyal

More articles in Macroeconomics and Finance in Emerging Market Economies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2021-11-27
Handle: RePEc:taf:macfem:v:13:y:2020:i:1:p:1-28