The effect of capital flows composition on output volatility

By distinguishing between foreign direct investment (FDI) and portfolio and other investments (OTR), we study the effects of the composition of capital inflows on output volatility. We develop a simple empirical model which, under certain conditions satisfied in the data, yields three key testable i...

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Autores principales: Vúletin, Guillermo Javier, Federico, Pablo, Vegh, Carlos
Formato: Articulo
Lenguaje:Inglés
Publicado: 2018
Materias:
Ciencias Económicas
foreign direct investment
capital inflows
output volatility
inversión extranjera directa
flujos de capital
volatilidad del producto
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/71841
https://revistas.unlp.edu.ar/Economica/article/view/6109
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-71841
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
foreign direct investment
capital inflows
output volatility
inversión extranjera directa
flujos de capital
volatilidad del producto
spellingShingle Ciencias Económicas
foreign direct investment
capital inflows
output volatility
inversión extranjera directa
flujos de capital
volatilidad del producto
Vúletin, Guillermo Javier
Federico, Pablo
Vegh, Carlos
The effect of capital flows composition on output volatility
topic_facet Ciencias Económicas
foreign direct investment
capital inflows
output volatility
inversión extranjera directa
flujos de capital
volatilidad del producto
description By distinguishing between foreign direct investment (FDI) and portfolio and other investments (OTR), we study the effects of the composition of capital inflows on output volatility. We develop a simple empirical model which, under certain conditions satisfied in the data, yields three key testable implications. First, output volatility should depend positively on FDI and OTR volatility. Second, output volatility should be an increasing function of the correlation between FDI and OTR. Third, for low values of the FDI share, output volatility should be a decreasing function of the share of FDI in total capital inflows. We find strong support in the data for all three implications, even after controlling for other factors that may influence output volatility and dealing with potential endogeneity problems.
format Articulo
Articulo
author Vúletin, Guillermo Javier
Federico, Pablo
Vegh, Carlos
author_facet Vúletin, Guillermo Javier
Federico, Pablo
Vegh, Carlos
author_sort Vúletin, Guillermo Javier
title The effect of capital flows composition on output volatility
title_short The effect of capital flows composition on output volatility
title_full The effect of capital flows composition on output volatility
title_fullStr The effect of capital flows composition on output volatility
title_full_unstemmed The effect of capital flows composition on output volatility
title_sort effect of capital flows composition on output volatility
publishDate 2018
url http://sedici.unlp.edu.ar/handle/10915/71841
https://revistas.unlp.edu.ar/Economica/article/view/6109
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