Non-FDI Capital Inflows in Low-Income Developing Countries: Catching the Wave?

Araujo, Juliana Dutra; David, Antonio; Hombeeck, Carlos van; Papageorgiou, Chris

doi:10.5089/9781484341087.001

Cited by 10 publications

(6 citation statements)

References 22 publications

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“…Private capital inflows then picked up again in the 1990 and 2000s following initiating the Brady Plan. In lower-income EMDCs, by comparison, the increase in portfolio flows was more gradual, with an acceleration in non-FDI capital inflows and the emergence of sovereign bond issuances in the 2000s (Araujo et al, 2015a;Presbitero et al, 2015).…”

Section: Composition Of Global External Assetsmentioning

confidence: 98%

Financial Globalization and Inequality

Eichengreen¹,

Csonto²,

El-Ganainy³

et al. 2021

IMF Working Papers

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We review the debate on the association of financial globalization with inequality. We show that the within-country distributional impact of capital account liberalization is context specific and that different types of flows have different distributional effects. Their overall impact depends on the composition of capital flows, their interaction, and on broader economic and institutional conditions. A comprehensive set of policies – macroeconomic, financial and labor- and product-market specific – is important for facilitating wider sharing of the benefits of financial globalization.

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Section: Composition Of Global External Assetsmentioning

confidence: 98%

Financial Globalization and Inequality

Eichengreen¹,

Csonto²,

El-Ganainy³

et al. 2021

IMF Working Papers

View full text Add to dashboard Cite

show abstract

“…Private capital inflows then picked up again in the 1990 and 2000s following initiation of the Brady Plan. In lower-income EMDCs, by comparison, the increase in portfolio flows was more gradual, with an acceleration in non-FDI capital inflows and the emergence of sovereign bond issuances in the 2000s (Araujo et al 2015a;Presbitero et al 2015).…”

Section: Facts About Capital Flowsmentioning

confidence: 98%

Financial Globalization

Eichengreen¹,

Csonto²,

El-Ganainy³

2021

How to Achieve Inclusive Growth

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This chapter reviews the academic and policy debate on the association between financial globalization and inequality. The evidence suggests that the distributional impact of financial globalization is context-specific and different types of flows have different distributional implications, though the consensus points to unequalizing effects of capital account liberalization. The overall impact thus depends on the composition of flows, their interaction, as well as on the broader economic and institutional conditions. A comprehensive set of policies, including macroeconomic and financial sector policies, and labor and product markets, is important to enable wider sharing of the benefits of financial globalization.

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“…Insights from a number of recent studies offer a storyline that buttresses the motivation of this paper. By 2015, surges in gross non-FDI private flows (as percent of GDP) to LIDCs were comparable to those of EMs (Araujo et al, 2015). Most of these flows have gone to FMs.…”

Section: Introductionmentioning

confidence: 95%

Frontier and Emerging Markets: A Perspective from Portfolio Flows and Financial Integration

Abidi¹,

Hacibedel²,

Nkusu³

2019

JBFE

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This paper investigates to what extent low-income developing countries (LIDCs) characterized as frontier markets (FMs) have begun to be subject to capital flows dynamics typically associated with emerging markets (EMs). Using a sample of developing countries covering the period 2000-14, we show that: (i) average annual portfolio flows to FMs as a share of gross domestic product (GDP) outstripped those to EMs by about 0.6 percentage points of GDP; (ii) during years of heightened stress in global financial markets, portfolio flows to FMs dried up like those to EMs; and that (iii) FMs have become more integrated into international financial markets. Our findings confirm that, in terms of portfolio flows, FMs have become more similar to EMs than to the rest of LIDCs and are therefore more vulnerable to swings in global financial markets conditions. Accordingly, it is important to have in place frameworks to strengthen FMs' resilience to adverse capital flows shocks.

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Non-FDI Capital Inflows in Low-Income Developing Countries: Catching the Wave?

Cited by 10 publications

References 22 publications

Financial Globalization and Inequality

Financial Globalization and Inequality

Financial Globalization

Frontier and Emerging Markets: A Perspective from Portfolio Flows and Financial Integration

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