Patterns of Capital Flows to Emerging Markets: A Theoretical Perspective

This paper reviews some of the basic patterns of international capital flows to emerging markets in recent years, including the composition of capital flows, intraregional flow patterns, and the geographical distribution of the flows. A theoretical model that sheds new light on these observed patter...

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Bibliographic Details
Main Author: Chen, Zhaohui (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 1997
Series:IMF Working Papers Working Paper No. 97/13
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Summary:This paper reviews some of the basic patterns of international capital flows to emerging markets in recent years, including the composition of capital flows, intraregional flow patterns, and the geographical distribution of the flows. A theoretical model that sheds new light on these observed patterns is developed. This model focuses on the cost of financing aspect of capital flows, and shows that the patterns of capital flows are influenced by the combined effects of financial market development and growth potential in the recipient countries. The theoretical predictions of the model are shown to be consistent with the stylized facts
Physical Description:1 Online-Ressource (32 p)
ISBN:1451924941
9781451924947

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