Determinants and Repercussions of the Composition of Capital Inflows

Mark Carlson and Leonardo Hernández

No 2002/086, IMF Working Papers from International Monetary Fund

Abstract: The Mexican, Asian, and Russian crises of the mid- and late 1990s have renewed interest among policymakers in the determinants and effects of private capital inflows. This paper analyzes whether policies can affect the composition of capital inflows and whether different compositions aggravate crises. The results support the view that, while fundamentals matter, capital controls can affect the mix of capital inflows that countries receive. The results also show that during the Asian crisis, countries with more yen-denominated debt faired worse, while during the Mexican crisis larger short-term debt stocks increased the severity of the crisis.

Keywords: WP; portfolio equity; denomination affect crisis severity; group crisis; crisis country; crises index; crisis transmission; net capital; capital flows; crisis; contagion; short-term debt flow; studies group crisis; group short-term debt; emerging market crisis; float tend; nominal exchange rate; Capital inflows; Foreign direct investment; Real exchange rates; Exchange rate arrangements; East Asia; Asia and Pacific (search for similar items in EconPapers)
Pages: 50
Date: 2002-05-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=15801 (application/pdf)

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:imf:imfwpa:2002/086

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().