International Capital Flows and Portfolio Equilibrium

Porter, Michael A.

doi:10.1086/260207

Cited by 224 publications

(5 citation statements)

References 10 publications

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“…They derived the monetary policy reaction function by assuming that the central bank neutralizes the monetary effects of capital inflows from abroad by changing its domestic or net assets. While in the literature, the estimation of the offset coefficient is mostly based on the theoretical framework set by Kouri and Porter (1974). They derived a model of international capital flows assuming a small open economy with a fixed exchange rate regime.…”

Section: Literature Reviewmentioning

confidence: 99%

Monetary Policy Reaction Function and Sterilization of Capital Inflows: An Analysis of Asian Countries

Hashmi¹,

Xu²,

Khan³

et al. 2011

ASS

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The study was mainly focused on estimation of monetary policy reaction function and degree of sterilization for the sample comprising of Pakistan, Korea, Philippines and Japan by using quarterly data ranging from 1980-1 to 2007-2. The study has used Johansen multivariate co integration technique. We conclude that over the period of study all the central banks of these countries have conducted a strong sterilization policy, but not fully sterilized the capital inflow. These countries have used the sterilization policy, though it is different in magnitude for different countries. Results show that in all the economies whether they are agriculture or non-agriculture they sterilized their capital inflows in the long run. Short run adjustment towards the long run equilibrium shows high value of adjustment for Korea and Philippines while for Pakistan its coefficient shows very little adjustment. On the other hand Korea and Philippines has shown comprehensive adjustment policies towards long term adjustment.

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Section: Literature Reviewmentioning

confidence: 99%

Monetary Policy Reaction Function and Sterilization of Capital Inflows: An Analysis of Asian Countries

Hashmi¹,

Xu²,

Khan³

et al. 2011

ASS

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“…Such expectations indicate that relatively high domestic interest rates are seen as reflecting high expected levels of domestic inflation with resulting declines in the future spot exchange rate. '5 This result is also reflected in Table 4, where the coefficient on (AR -AR*) is positive, implying a negative value for f. A negative ,8 should also reduce the 14. This result was also reflected in other sample periods-quite often the very act of the central bank's intervening seems to have generated "confident" expectations of the type which reinforce monetary policy.…”

Section: Estimates For Selected Short-run Periodsmentioning

confidence: 63%

The Stability of Exchange Rate Expectations and Canadian Capital Flows

Kohlhagen¹

1977

The Journal of Finance

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3. Our intent is merely to model and measure the effect of exchange rate expectations upon a given capital flow model, not to debate the pros and cons of the Kouri-Porter (1974) paper. We have therefore chosen to accept their model without attempting at this point to refine or improve it (e.g., possible specification problems with the possible endogeneity of the foreign and domestic components of the monetary base). 1657

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“…Ordinary least squares regression Kouri and Porter (1974) The authors investigated the international capital flow and the balance of payments in four countries (period: 1960-1970).…”

Section: Methodsmentioning

confidence: 99%

The impact of foreign direct investment on the economic development of emerging countries of the European Union

2021

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Starting from the premise that the impact of foreign direct investment (FDI) on the economies of the host countries is different from one economy to another, the aim is to evaluate the impact of a set of economic and social indicators on FDI and net income (% GDP-Gross Domestic Product) in emerging, ex-socialist countries of the European Union. Using econometric models, we analysed the relationship between the evolution of the net FDI inflows and a number of statistical indicators. Our findings proved that there are similarities between the countries analysed, in terms of the evolution of net FDI inflows, with some differences being recorded for Hungary, where the evolution of net FDI inflows has major fluctuations. We found that the countries present both similarities and differences in terms of variables that affect FDI. The FDI net inflows (% GDP) are in seven, out of nine economies, positively influenced by GDP, as it follows: Bulgaria, Lithuania and Slovenia are FDI attractive by an increasing GDP rate, while Latvia, Poland and Romania react to a better GDP per capita. Hungary is the only one that is positively influenced by both GDP rate and GDP per capita. Moreover, a decreasing corruption perception index, country risk rating, income tax (% of commercial profit) and other taxes paid by companies (% commercial profit) can positively influence the inflows of FDIs in some of the analysed countries.

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International Capital Flows and Portfolio Equilibrium

Cited by 224 publications

References 10 publications

Monetary Policy Reaction Function and Sterilization of Capital Inflows: An Analysis of Asian Countries

Monetary Policy Reaction Function and Sterilization of Capital Inflows: An Analysis of Asian Countries

The Stability of Exchange Rate Expectations and Canadian Capital Flows

The impact of foreign direct investment on the economic development of emerging countries of the European Union

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