The Role of Asymmetry and Uncertainties in the Capital Flows- Economic Growth Nexus

Ibrahim Raheem, Sara le Roux and Simplice Asongu

No 19/047, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: This study examines the asymmetry between capital flows and economic growth in 42 countries for the period 1990-2017. It further argues that uncertainty is an important channel through which asymmetry operates. As such, the three measures of uncertainty are macroeconomic, fiscal and institutional. The Generalised Method of Moments is used as an empirical strategy. The existence of an asymmetry is confirmed by the findings as capital flows are more reactive to economic drag when compared to economic growth. Furthermore, the channels through which asymmetry operate are heterogeneous to measures of capital flows and proxies for uncertainty.

Keywords: Capital flows; Economic growth; Asymmetry; Uncertainty and Emerging countries (search for similar items in EconPapers)
JEL-codes: C13 F3 G15 O16 (search for similar items in EconPapers)
Pages: 22
Date: 2019-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://publications.excas.org/RePEc/exs/exs-wpaper ... ows-Growth-Nexus.pdf Revised version, 2019 (application/pdf)

Related works:
Working Paper: The Role of Asymmetry and Uncertainties in the Capital Flows- Economic Growth Nexus (2019)
Working Paper: The Role of Asymmetry and Uncertainties in the Capital Flows- Economic Growth Nexus (2019)
Working Paper: The Role of Asymmetry and Uncertainties in the Capital Flows- Economic Growth Nexus (2019)
Working Paper: The Role of Asymmetry and Uncertainties in the Capital Flows-Economic Growth Nexus (2019)
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