Library Header Image
LSE Research Online LSE Library Services

Measuring and explaining the volatility of capital flows to emerging countries

Broto, Carmen and Díaz-Cassou, Javier and Erce, Aitor (2011) Measuring and explaining the volatility of capital flows to emerging countries. Journal of Banking and Finance, 35 (8). pp. 1941-1953. ISSN 0378-4266

Full text not available from this repository.
Identification Number: 10.1016/j.jbankfin.2011.01.004


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.

Item Type: Article
Official URL:
Additional Information: © 2011 Elsevier
Subjects: H Social Sciences > HB Economic Theory
Sets: Departments > International Development
Collections > Economists Online
Date Deposited: 27 Jun 2011 10:36
Last Modified: 04 May 2017 09:34

Actions (login required)

View Item View Item