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: | , |
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2021/1162155 |
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| _version_ | 1850224832891846656 |
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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. |
| format | Article |
| id | doaj-art-533dee7254b94b2f9793e311b8a71e9b |
| institution | OA Journals |
| issn | 1607-887X |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| 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 |
| work_keys_str_mv | AT xiaochending thecomplexityofglobalcapitalflowsevidencefromg20countries AT lusui thecomplexityofglobalcapitalflowsevidencefromg20countries AT xiaochending complexityofglobalcapitalflowsevidencefromg20countries AT lusui complexityofglobalcapitalflowsevidencefromg20countries |