Determinants of Capital Flows to Emerging Market Economies
Kim, Kyunghun | November 2018
Abstract
Theoretically, capital market integration allows people to share the country-specific risks by holding foreign assets, and contributes to economic growth especially for emerging market economies (hereafter EMEs) at their early stages of development. At the same time, there are also some problems caused by capital market integration. As we experienced during the global financial crisis (GFC), financial shocks originating from the center country can be rapidly transmitted to peripheral countries through the integrated financial market. Volatile cross-border capital inflows and outflows impede efforts to maintain financial stability, which eventually stunts economic growth by incurring financial crises.
Citation
Kim, Kyunghun. 2018. Determinants of Capital Flows to Emerging Market Economies. © Korea Institute for International Economic Policy. http://hdl.handle.net/11540/9408.Keywords
Financial Stability
Financial Management System
Financial Restructuring
Capital Market Development
Market Development
Economics
Erosion
International Economics
Macroeconomic
Macroeconomic Analysis
Performance Evaluation
Impact Evaluation
Foreign and Domestic Financing
Foreign Direct Investment
International Financial Market
Multilateral Financial Institutions
Economic Recession
Market
Crisis
Economic indicators
Growth models
Gross domestic product
Macroeconomics
Economic forecast
Business Financing
Investment Requirements
Labor policy
Manpower policy
Business recessions
Multilateral development banks
Regulatory reform
Capital
Exports
Economic development projects
Economic policy
Economic forecasting
Investment Requirements
Banks
International banks and banking
Capital movements
Central banks and banking
Bills of exchange
Swaps
Banks and banking
Financial crisis
Credit control
Credit allocation
Capital market
International liquidity
Liquidity
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