Year: 2017
Type: report
Abstract: We construct a new quarterly data set of international capital flows broken down by sector: banks, corporates and sovereigns.Using our novel data set, we establish several key facts that demonstrate the importance of distinguishing in-and outflows by the domestic sectoral identity.We find that public sector flows may serve as a countervailing force to private sector flows, especially in emerging markets (EMs), as these flows respond differently not only to countryspecific fundamentals but also to global shocks.The high inflow-outflow correlation observed in total capital flow data is driven by within-sector flows, especially those of AE banks.In general, inflows and outflows of AEs and inflows to EMs are primarily AE banks' transactions, and, as a consequence, respond similarly to capital flow drivers.By contrast, EM outflows respond differently to global shocks and changes in fundamentals, leading to lower inflow-outflows correlations for EMs.
DOI: 10.3386/w23116
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
Funder: World Bank Group
OpenAlex ID: W3145184641