Surges and reversals in capital flows

We examine the drivers of large cross-border capital flows in emerging and frontier market economies by adopting a new approach that characterizes capital flows into three categories: surges, normal flows, and reversals. Our results show that distinguishing between the different states of flows is i...

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Bibliographic Details
Published in:International review of economics & finance 2018-07, Vol.56, p.92-98
Main Authors: Qureshi, Mahvash S., Sugawara, Naotaka
Format: Article
Language:English
Subjects:
Capital flows
Emerging markets
Frontier markets
Reversals
Surges
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Summary:We examine the drivers of large cross-border capital flows in emerging and frontier market economies by adopting a new approach that characterizes capital flows into three categories: surges, normal flows, and reversals. Our results show that distinguishing between the different states of flows is important, and that global and domestic factors do not affect surge and reversal likelihood symmetrically. We also find that there are some differences in the factors associated with surges and reversals in emerging and frontier market economies.
ISSN:1059-0560
1873-8036
DOI:10.1016/j.iref.2018.03.020