Perspective Chapter: International Financial Markets and Financial Capital Flows - Forms, Factors and Assessment Tools

Dr. Nemer Badwan

A chapter in Macroeconomic Analysis for Economic Growth from IntechOpen

Abstract: This paper/chapter empirically examines the reaction of international financial markets and financial capital flows across many developing and emerging market economies, with a particular focus on the dynamics of capital flows across emerging market economies. Using daily data from (2000 to 2020) and controlling for a range of local and global macroeconomic and financial factors and global financial crisis, we use a fixed-effects panel approach quantitative and descriptive approach combined to show that emerging markets have been affected more than advanced economies. In particular, emerging economies in Asia and Europe have experienced the strongest impact on stocks, bonds and exchange rates in recent times, as well as sudden and large capital inflows. Our findings suggest that very large fiscal stimulus packages, as well as quantitative easing by central banks, helped restore overall investor confidence by lowering bond yields and boosting stock prices. Our findings also highlight the role that global factors and developments in the world's leading financial centers play in financial conditions in emerging markets and developing countries. More importantly, the impact of quantitative easing measures related to the global financial crisis by central banks in developed countries.

Keywords: international financial markets; financial capital flows; financial development; economic growth; developing counties; emerging markets; global financial crisis (search for similar items in EconPapers)
JEL-codes: O40 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:246853

DOI: 10.5772/intechopen.102572

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