EconPapers    
Economics at your fingertips  
 

Modeling Country Risk and Capital Flows in GTAP

Gerard Malcolm

GTAP Technical Papers from Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University

Abstract: This paper describes how the standard GTAP framework may be used to assess the short-run impacts of changes in international capital market conditions. It describes a technique that can be used to examine the short-run effects of changes in country risk. In the standard GTAP Model investment demand is spread across regions according to a simple rate-of-return-equalizing rule. By making the risk premium in this rule explicit, we are able to examine the effects of changes in these risk premium. This work was originally developed as part of the course material for the South African GTAP short course in January 1998. South Africa has experienced a series of dramatic changes during the last decade, and these have had very significant effects on the capital account. Thus, this paper also contains an application of the technique developed to the recent South African experience, and an assessment of how well the simulated changes in this application match actual outcomes. Technical Paper Number 13 can be downloaded in PDF format. To print this you will need the Adobe Acrobat Reader. Replication of the results in this technical paper may be readily accomplished using the latest version of the RunGTAP software. For those interested in further analysis of the implications of the capital inflow for the South African economy, as well as for the rest of Southern Africa, please download this file in MS Word format.

New Economics Papers: this item is included in nep-ifn and nep-rmg
Date: 1998
Note: GTAP Technical Paper No. 13
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=316 (text/html)

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:gta:techpp:316

Access Statistics for this paper

More papers in GTAP Technical Papers from Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University Contact information at EDIRC.
Bibliographic data for series maintained by Jeremy Douglas ().

 
Page updated 2019-11-26
Handle: RePEc:gta:techpp:316