Volatility of short-term capital flows and private investment in emerging markets

Journal of Development Studies

Volumn 45, Issue 5, 2009, Pages 672-692

  Demir, Firat ^a  

^a UNIVERSITY OF OKLAHOMA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITAL FLOW; ECONOMIC IMPACT; INVESTMENT; MARKET DEVELOPMENT; PANEL DATA;

ARGENTINA; EURASIA; MEXICO [NORTH AMERICA]; NORTH AMERICA; SOUTH AMERICA; TURKEY;

EID: 70350784410     PISSN: 00220388     EISSN: 17439140     Source Type: Journal    
DOI: 10.1080/00220380802582379     Document Type: Article

References (49)

1. Agrawal, P. (2004) Interest rates and investment in East Asia: an empirical evaluation of various financial liberalisation hypotheses. The Journal of Development Studies, 40(3), pp. 142-173.
2. Aizenman, J. and Marion, N. (1996) Volatility and the investment response. NBER Working Paper No. 5841, National Bureau of Economic Research, Cambridge, MA.
3. Arellano, M. and Bond, S.R. (1991) Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58(2), pp. 277-297.
4. BIS (Bank for International Settlements) (2005) Triennial Central Bank Survey: Foreign Exchange and Derivatives Market Activity in 2004 (Basel: BIS).
5. Blundell, R., Bond, S. and Meghir, C. (1992) Econometric models of company investment, in: L. Matyas and P. Sevestre (eds) The Econometrics of Panel Data (Netherlands: Kluwer Academic Publishers), pp. 388-413.
6. Bond, S. and Meghir, C. (1994) Dynamic investment models and the firm's financial policy. Review of Economic Studies, 61(2), pp. 197-222.
7. Brock, P.L. and Rojas-Suarez, L. (2000) Understanding the behaviour of bank spreads in Latin America. Journal of Development Economics, 63(1), pp. 113-134.
8. Calvo, G. (1998) Varieties of capital-market crises, in: G. Calvo and M. King (eds) The Debt Burden and its Consequences for Monetary Policy (New York: St. Martin's Press), pp. 181-202.
9. Capital Markets Board of Turkey (SPK) (2004) Trading Volume in Secondary Markets. Monthly Bulletin, December, Ankara.
10. Chirinko, R.S., Fazzari, S.M. and Meyer, A.P. (1999) How responsive is business capital formation to its user cost? An exploration with micro data. Journal of Public Economics, 74(1), pp. 53-80.
11. Comin, D. and Mulani, S. (2006) Diverging trends in aggregate and firm volatility. The Review of Economics and Statistics, 88(2), pp. 374-383.
12. Demir, F. (2004) A failure story: politics and financial liberalization in Turkey, revisiting the revolving door hypothesis. World Development, 32(5), pp. 851-869.
13. Demir, F. (2007) Private investment, portfolio choice and financialization of real sectors in emerging markets. Mimeo, University of Oklahoma.
14. Diaz Alejandro, C. (1985) Good-bye financial repression, hello financial crash. Journal of Development Economics, 19(1-2), pp. 1-24.
15. Economist Intelligence Unit (EIU) (2003a) Country Finance, Mexico (Cambridge and New York: EIU).
16. Economist Intelligence Unit (EIU) (2003b) Country Finance, Turkey (Cambridge and New York: EIU).
17. Fanelli, J.M., Rozenwurcel, G. and Simpson, L.M. (1998) Financial reform in developing countries: Argentina, in: J.M. Fanelli and R. Medhora (eds) Financial Reform in Developing Countries (New York: St. Martin's Press), pp. 31-56.
18. Felix, D. (1998) Asia and the crisis of financial globalization, in: D. Baker, G. Epstein, and R. Pollin (eds) Globalization and Progressive Economic Policy (Cambridge University Press), pp. 163-194.
19. Fernandez-Arias, E. (1994) The new wave of private capital inflows: push or pull? IECIF Policy Research Working Paper, No. 1312 (June), The World Bank.
20. Fitzgerald, E.V.K. (2001) Short term capital flows, the real economy and income distribution in developing countries, in: S. Griffith-Jones, M.F. Montes and A. Nasution (eds) Short Term Capital Flows and Economic Crisis (Oxford: Oxford University Press), pp. 29-51.
21. Frankel, J.A. and Rose, A.K. (1996) Currency crashes in emerging markets: an empirical treatment. Journal of International Economics, 41(3), pp. 351-366.
22. Frenkel, R. and Ros, J. (2006) Unemployment and the real exchange rate in Latin America. World Development, 34(4), pp. 631-646.
23. Frenkel, R. and Simpson, L. (2003) The two waves of financial liberalization in Latin America, in: A.K. Dutt and J. Ros (eds) Development Economics and Structuralist Macroeconomics: Essays in Honor of Lance Taylor (Cheltenham: Edward Elgar), pp. 206-226.
24. Gabriele, A., Boratav, K. and Parikh, A. (2000) Instability and volatility of capital flows to developing countries. The World Economy, 23(8), pp. 1031-1056.
25. Goldberg, L., Dages, B.G. and Kinney, D. (2000) Foreign and domestic bank participation in emerging markets: lessons from Mexico and Argentina. NBER Working Paper, No.7714, National Bureau of Economic Research, Cambridge, MA.
26. Grabel, I. (1995) Assessing the impact of financial liberalisation on stock market volatility in selected developing countries. The Journal of Development Studies, 31(6), pp. 903-917.
27. Griever, W.L., Lee, G.A. and Warnock, F.E. (2001) The US system for measuring cross-border investment in securities: a primer with a discussion of recent developments. Federal Reserve Bulletin, 87, pp. 634-650.
28. International Monetary Fund (2007) International Financial Statistics Online Database, available online at: http://www.imfstatistics.org/imf/, Washington DC, IMF.
29. Istanbul Chamber of Industry (ISO) (various years) Top 500 manufacturing firms survey, annual report (Istanbul: ISO).
30. Keynes, J.M. (1964) The General Theory of Employment, Interest and Money (New York: Harcourt Inc.).
31. Kose, A., Prasad, E. and Terrones, M. (2003) Financial integration and macroeconomic volatility. IMF Staff Paper 03/50, Washington, DC.
32. Kuczynski, P.P. and Williamson, J. (2003) After the Washington Consensus: Restarting Growth and Reform in Latin America (Washington DC: Institute for International Economics).
33. Laeven, L. (2003) Does financial liberalization reduce financing constraints? Financial Management, 32(1), pp. 5-34.
34. Lensink, R. and Morrissey, O. (2006) Foreign direct investment: flows, volatility, and the impact on growth. Review of International Economics, 14(3), pp. 478-493.
35. Mairesse, J., Hall, B.H. and Mulkay, B. (1999) Firm level investment in France and the United States: an exploration of what we have learned in twenty years, NBER Working Paper No. 7437, National Bureau of Economic Research, Cambridge, MA.
36. Moguillansky, G. (2002) Investment and financial volatility in Latin America. CEPAL Review, 77, pp. 45-63.
37. Ocampo, J.A. (2001) Recasting the international financial agenda, G-24 Discussion Paper Series, No.13, United Nations.
38. Pindyck, R. and Solimano, A. (1993) Economic instability and aggregate investment, in: O.J. Blanchard and S. Fischer (eds) NBER Macroeconomics Annual (Cambridge, MA: MIT Press), pp. 259-302.
39. Rama, M. (1993) Empirical investment equations for developing countries, in: L. Serven and A. Solimano (eds) Striving for Growth after Adjustment: The Role of Capital Formation (Washington, DC: The World Bank), pp. 107-143.
40. Ramey, G. and Ramey, V.A. (1995) Cross country evidence on the link between volatility and growth. American Economic Review, 85(5), pp. 1138-1151.
41. Rodrik, D. and Velasco, A. (2000) Short term capital flows, in: B. Plescovic, and J.E. Stiglitz (eds) Annual World Bank Conference on Development Economics 1999 (Washington, DC: The World Bank), pp. 59-70.
42. Rojas-Suarez, L. and Weisbrod, S. (1996) Building stability in Latin American financial markets. Working Paper No.320 (February), Inter-American Development Bank, Washington, DC.
43. Serven, L. (1998) Macroeconomic uncertainty and private investment in LDC: an empirical investigation. Mimeo, The World Bank, Washington, DC.
44. United Nations Conference on Trade and Development (UNCTAD) (1998) Trade and Development Report (Genova: UNCTAD).
45. United Nations Conference on Trade and Development (UNCTAD) (2003) Trade and Development Report (Genova: UNCTAD).
46. United Nations Conference on Trade and Development (UNCTAD) (2006) Trade and Development Report (Genova: UNCTAD).
47. Wei, S. and Zhang, C. (2006) Why did individual stocks become more volatile? Journal of Business, 79(1), pp. 259-292.
48. Weller, C.E. (2001) Financial crises after financial liberalisation: exceptional circumstances or structural weakness? The Journal of Development Studies, 38(1), pp. 98-127.
49. World Bank (2007) World Development Indicators Online Dataset (Washington, DC: World Bank).