The Complexity of Global Capital Flows: Evidence from G20 Countries

With the high volatility of capital flow and the imbalance of capital flow between emerging and advanced economies, the complexity of capital flow management is always attractive to researchers and policymakers. This study explores how capital flows in G20 countries are significantly impacted by pul...

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Main Authors: Xiaochen Ding, Lu Sui
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2021/1162155
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author Xiaochen Ding
Lu Sui
author_facet Xiaochen Ding
Lu Sui
author_sort Xiaochen Ding
collection DOAJ
description With the high volatility of capital flow and the imbalance of capital flow between emerging and advanced economies, the complexity of capital flow management is always attractive to researchers and policymakers. This study explores how capital flows in G20 countries are significantly impacted by pull and push factors by using regressions, dynamic system GMM, and Panel-VAR models. The results show that international capital flows are significantly associated with domestic financial development, which is measured by stock-market liquidity and domestic credit. Moreover, international capital flows are affected by push factors, such as the growth of the world economy and fluctuations of the crude oil price. This study controls for real interest rate, foreign currency, and capital restriction because the government and macroprudential policies are critical influences on stabilizing capital flows.
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spelling doaj-art-533dee7254b94b2f9793e311b8a71e9b2025-08-20T02:05:31ZengWileyDiscrete Dynamics in Nature and Society1607-887X2021-01-01202110.1155/2021/1162155The Complexity of Global Capital Flows: Evidence from G20 CountriesXiaochen Ding0Lu Sui1College of FinanceCollege of FinanceWith the high volatility of capital flow and the imbalance of capital flow between emerging and advanced economies, the complexity of capital flow management is always attractive to researchers and policymakers. This study explores how capital flows in G20 countries are significantly impacted by pull and push factors by using regressions, dynamic system GMM, and Panel-VAR models. The results show that international capital flows are significantly associated with domestic financial development, which is measured by stock-market liquidity and domestic credit. Moreover, international capital flows are affected by push factors, such as the growth of the world economy and fluctuations of the crude oil price. This study controls for real interest rate, foreign currency, and capital restriction because the government and macroprudential policies are critical influences on stabilizing capital flows.http://dx.doi.org/10.1155/2021/1162155
spellingShingle Xiaochen Ding
Lu Sui
The Complexity of Global Capital Flows: Evidence from G20 Countries
Discrete Dynamics in Nature and Society
title The Complexity of Global Capital Flows: Evidence from G20 Countries
title_full The Complexity of Global Capital Flows: Evidence from G20 Countries
title_fullStr The Complexity of Global Capital Flows: Evidence from G20 Countries
title_full_unstemmed The Complexity of Global Capital Flows: Evidence from G20 Countries
title_short The Complexity of Global Capital Flows: Evidence from G20 Countries
title_sort complexity of global capital flows evidence from g20 countries
url http://dx.doi.org/10.1155/2021/1162155
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