Volatility of Short-term Capital Flows and Private Investment in Emerging Markets.

Using micro-level panel data, the paper analyses the impacts of short-term capital flow volatility on new fixed investment spending of publicly traded real sector firms in three major emerging markets - Argentina, Mexico and Turkey. The empirical results, including sensitivity tests, suggest that in...

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Publicado en:Journal of Development Studies Vol. 45; no. 5; pp. 672 - 693
Autor principal: Demir, Firat
Formato: Artículo
Publicado: Taylor & Francis Ltd May2009
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Volatility of Short-term Capital Flows and Private Investment in Emerging Markets.
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        au: Demir, Firat
        affil: University of Oklahoma, USA
      su:
        Capital
        Capital movements
        Investments
        Real property
        Emerging markets
        Argentina
        Mexico
        Türkiye
      sug:
        subj:
          Argentina
          Mexico
          Türkiye
          Capital
          Capital movements
          Investments
          Real property
          Emerging markets
      ab: Using micro-level panel data, the paper analyses the impacts of short-term capital flow volatility on new fixed investment spending of publicly traded real sector firms in three major emerging markets - Argentina, Mexico and Turkey. The empirical results, including sensitivity tests, suggest that increasing volatility of capital inflows has an economically and statistically significant negative effect on new investment spending of private firms. Accordingly, a 10 per cent increase in capital flow volatility reduces fixed investment spending in the range of 1-1.7, 2.3-15, and 1 per cent in Argentina, Mexico and Turkey respectively.
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    language: English
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