Determinants and Repercussions of the Composition of Capital Inflows
By Mark A. Carlson, Leonardo Hernández. Social Science Research Network, 2002
72 citations recorded by the source corpus.
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.
View Paper: https://www.semanticscholar.org/paper/6b7f6b12c90caf8b33eb223e1b1c63793cd006c6
How researchers see this paper
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- M. Ayhan Kose
- Ayhan Kose
- Eswar S. Prasad
- Joseph E. Stiglitz
- Jeffrey A. Frankel
- Roberto Cardarelli
- Olivier Jeanne
- Carmen M. Reinhart
Citations in the corpus
- Effects of Financial Globalization on Developing Countries: Some Empirical Evidence (2003, background): “Recent research suggests that macroeconomic policies are an important determinant of the composition of capital inflows (Carlson and Hernandez (2002)).”
- Capital Inflows: Macroeconomic Implications and Policy Responses (2009, background): “In principle, if the central bank is able to completely offset the increase in NFA by decreasing NDA, then β should take the 15 Net domestic assets (NDA) computed using NDA = MB – NFA using the definitions described above.”
- Capital Market Liberalization and Development (2008, background): “Montiel and Reinhart (1999); Hernandez et al. (2001); Carlson and Hernandez (2002); Mody and Murshid (2002).”
- Capital Controls and Foreign Direct Investment (2004, unknown): “Montiel and Reinhart (1999) and Carlson and Hernandez (2002) examine how restrictions on capital account affect the volume and composition of capital flows.”