European Parliament Library

Growth from International Capital Flows :, The Role of Volatility Regimes, Antu Murshid, Ashoka Mody

Abstract
Recent commentary has downplayed the growth dividend from international financial integration, highlighting the possibly negative correlation between capital inflows and long-run growth. This paper presents new evidence consistent with standard economic theory and a more benign interpretation of cross-border private capital flows. The key observation is that a country’s growth volatility changes over time. With volatility below a threshold, an inflow of foreign capital has promoted growth. However, during periods of volatile growth, more flows have been associated with slower growth. Volatility levels and changes reflect an interaction of domestic production and institutional structures with global factors
Table Of Contents
Cover Page; Title Page; Copyright Page; Abstract; Contents; I. Introduction; 1. The Paradox of Capital; II. Specifying the Growth-Capital Flows Relationship; 1. Cross-Country Current Account-Growth Relationship in Developing Countries; A. Dealing with Heteroscedasticity Reveals Misspecification; 2. Current Account-Growth Relationship in Developing Countries: Weighted Regressions; 3. Within and Between Country Variation in Volatility; B. Alternate Specification; 4. Current Account, Growth and Volatility: Interactions; III. Volatility Thresholds; 5. Threshold Effects
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (58 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781455299676

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