International Capital Flows and Development : Financial Openness Matters / Luca Ricci, Thierry Tressel, Dennis B. S. Reinhardt.

Format:

Book

Government document

Author/Creator:

Ricci, Luca.

Contributor:

Reinhardt, Dennis B. S.

Tressel, Thierry.

Series:

IMF Working Papers; Working Paper ; No. 2010/235

IMF Working Papers

Language:

English

Physical Description:

1 online resource (64 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2010.

Language Note:

English

Summary:

Does capital flow from rich to poor countries? We revisit the Lucas paradox and explore the role of capital account restrictions in shaping capital flows at various stages of economic development. We find that, when accounting for the degree of capital account openness, the prediction of the neoclassical theory is confirmed: less developed countries tend to experience net capital inflows and more developed countries tend to experience net capital outflows, conditional of various countries’ characteristics. The findings are driven by foreign direct investment, portfolio equity investment, and to some extent by loans to the private sector.

Contents:

Cover Page; Title Page; Copyright Page; Contents; I. Introduction; 1. Evolution of Capital Account Openness by Income Group; II. Literature; III. Data and empirical approach; Data and Descriptive Statistics; A First Look at Data; 2. Current Account to GDP and Capital Account Openness; 3a. Net Capital Inflows by Type of Flows and by Income Groups, 1980-2006; 3b. Gross Capital Inflows by Type of Flows and by Income Groups, 1980-2006; Empirical Approach; IV. Results; Current Account and Financial Openness in the Cross-Section of Countries

1. Current Account and Capital Account Openness (1980-2006)2. Current Account and Capital Account Openness in Repeated Cross-Sections; 4. Conditional Correlation Plot from Regression of Current Account on Initial Income and Controls: 2 Periods; Current Accounts and Financial Openness in a Panel of Countries; 3. Current Account and Openness in a Panel of Countries; 5. Effect of Openness on the Marginal Effect of Income; Robustness; 4. Robustness: Adding Control Variables; 5. Additional Robustness Tests; Which Type of Capital Flows from Rich to Poor Countries?

6. Capital Account Openness and Types of Capital Flows7. Capital Account Openness and Types of Capital Flows: Panel Estimates; V. Conclusion; VI. Appendix; A. Data; Notation; B. Sample; Biggest Sample for Unconditional Regressions - 109 Countries; C. Spline Search; Appendix Tables; References; Footnotes

Notes:

Description based upon print version of record.

Description based on publisher supplied metadata and other sources.

ISBN:

9786613864284

9781462324453

1462324452

9781455256723

1455256722

9781283551830

1283551837

9781455209934

1455209937

OCLC:

867926974