Measuring and explaining the volatility of capital flows to emerging countries

B-Tier
Journal: Journal of Banking & Finance
Year: 2011
Volume: 35
Issue: 8
Pages: 1941-1953

Authors (3)

Broto, Carmen (Banco de España) Díaz-Cassou, Javier (not in RePEc) Erce, Aitor

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper analyzes the determinants of the volatility of the various types of capital inflows into emerging countries. After calculating a proxy of the volatility of FDI, portfolio and bank inflows, we use a panel data model to study their relationship with a broad set of explanatory variables. Our results highlight the difficulties policy-makers face in stabilizing capital flows. Thus, we show that since 2000 global factors beyond the control of emerging economies have become increasingly significant relative to country-specific drivers. However, we identify some domestic macroeconomic and financial factors that appear to reduce the volatility of certain capital flows without increasing that of others.

Technical Details

RePEc Handle
repec:eee:jbfina:v:35:y:2011:i:8:p:1941-1953
Journal Field
Finance
Author Count
3
Added to Database
2026-01-24