Capital Flows and Economic Growth in the Era of Financial Integration and Crisis, 1990–2010
Aizenman, Joshua; Jinjarak, Yothin; Park, Donghyun | July 2013
Abstract
We investigate the relationship between economic growth and lagged international capital flows, disaggregated into FDI, portfolio investment, equity investment, and short-term debt. We follow about 100 countries during 1990–2010 when emerging markets became more integrated into the international financial system. We look at the relationship both before and after the global crisis. Our study reveals a complex and mixed picture. The relationship between growth and lagged capital flows depends on the type of flows, economic structure, and global growth patterns. We find a large and robust relationship between FDI – both inflows and outflows – and growth. The relationship between growth and equity flows is smaller and less stable. Finally, the relationship between growth and short-term debt is nil before the crisis, and negative during the crisis.
Citation
Aizenman, Joshua; Jinjarak, Yothin; Park, Donghyun. 2013. Capital Flows and Economic Growth in the Era of Financial Integration and Crisis, 1990–2010. © Springer. http://hdl.handle.net/11540/4296.Print ISBN
Park, Donghyun
ISSN
0923-7992
Keywords
Development
Finance
Development Challenges
Development Issues
Development Problems
Microenterprises Finance
Commercial Finance Companies
Enterprise Financing
ADB
Project finance
Development plans
Strategic planning
Business Financing
Investment Requirements
Insurance Companies
Insurers
Insurance stocks
Insurance holding companies
Insurance carriers
Insurance agencies
Business subsidies
Investment companies
Foreign investment
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