Private Capital Flows in East Asia: Boom, Bust and Beyond
- Topics:
- Commercial Banking
- Source:
- University of Adelaide
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Overview: This paper reviews and analyzes the nature and dynamics of international capital flows in the crisis hit East Asian economies in general during the pre-crisis boom period as well as the bust and eventual recovery that followed (1997 to early 2000). The data indicate that the recent rebound in regional growth rates, surges in equity prices and stabilization of exchange rates have been accompanied primarily by resurgence in portfolio capital inflows. Motivated by these facts and guided by a specific informational frictions model of portfolio flows, an array of simple but indicative statistical tests (correlation and causality) are conducted on available time series data to explore the determinants of private portfolio capital flows to the regional.
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Format: PDF | Size: 244KB | Date: Sep 2000 | Pages: 53



