Gross capital flows: Dynamics and crises

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Journal of Monetary Economics, Forthcoming
http://hdl.handle.net/10230/6358
To cite or link this document: http://hdl.handle.net/10230/6358
dc.contributor.author Broner, Fernando
dc.contributor.author Didier, Tatiana
dc.contributor.author Erce, Aitor
dc.contributor.author Schmukler, Sergio L.
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2010-06-01
dc.identifier.citation Journal of Monetary Economics, Forthcoming
dc.identifier.uri http://hdl.handle.net/10230/6358
dc.description.abstract This paper analyzes the behavior of international capital flows by foreign and domestic agents, dubbed gross capital flows, over the business cycle and during financial crises. We show that gross capital flows are very large and volatile, especially relative to net capital flows. When foreigners invest in a country, domestic agents invest abroad, and vice versa. Gross capital flows are also pro-cyclical. During expansions, foreigners invest more domestically and domestic agents invest more abroad. During crises, total gross flows collapse and there is a retrenchment in both inflows by foreigners and outflows by domestic agents. These patterns hold for different types of capital flows and crises. This evidence sheds light on the sources of fluctuations driving capital flows and helps discriminate among existing theories. Our findings seem consistent with crises affecting domestic and foreign agents asymmetrically, as would be the case under the presence of sovereign risk or asymmetric information.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1227
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Gross capital flows: Dynamics and crises
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:14:26Z
dc.subject.keyword Macroeconomics and International Economics
dc.subject.keyword gross capital flows
dc.subject.keyword net capital flows
dc.subject.keyword domestic investors
dc.subject.keyword foreign investors
dc.subject.keyword crises.
dc.rights.accessRights info:eu-repo/semantics/openAccess


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