Medium-Term Determinants of International Investment Positions: The Role of Structural Policies

Davide Furceri, Stephanie Guichard and Elena Rusticelli
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Elena Rusticelli: OECD

No 863, OECD Economics Department Working Papers from OECD Publishing

Abstract: This paper provides an empirical investigation of the medium-term determinants of international investment positions for a large sample of advanced and emerging economies. In addition to the usually considered drivers of foreign assets and liabilities, the analysis focuses on the role of structural policy indicators. Using cross-section and panel regression techniques the results suggest that structural policy settings are important long-term drivers of capital flows, having a relatively large impact on gross and net foreign capital positions and on their composition. In particular, the results suggest that certain kinds of structural policy reform could help to narrow global imbalances, and to modify the composition of international capital flows towards more stable and productive sources.

Déterminants à moyen terme des positions étrangères extérieures : le rôle des politiques structurelles Cet article présente une étude empirique des déterminants à moyen terme de positions de l'investissement international pour un large échantillon des économies avancées et émergentes. En plus des déterminants usuels des engagements et actifs internationaux, l'analyse met l'accent sur le rôle des indicateurs structurels. Les résultats des régressions en coupe transversale et en panel suggèrent que les politiques structurelles en place sont d'importants moteurs à long terme des flux de capitaux, ayant un impact relativement important sur les positions extérieures brutes et nettes et sur leur composition. En particulier, les résultats suggèrent que certains types de réforme des politiques structurelles pourraient aider à réduire les déséquilibres mondiaux et á modifier la composition des flux de capitaux vers des sources plus stables et plus productives.

Keywords: capital flows; déséquilibres mondiaux; flux des capitaux; global imbalances; politique structurelle; structural policy (search for similar items in EconPapers)
JEL-codes: E6 F21 (search for similar items in EconPapers)
Date: 2011-05-17
New Economics Papers: this item is included in nep-mac and nep-opm
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Citations: View citations in EconPapers (12)

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Journal Article: MEDIUM-TERM DETERMINANTS OF INTERNATIONAL INVESTMENT POSITIONS: THE ROLE OF STRUCTURAL POLICIES (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:863-en

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