| Description |
1 online resource (37 pages) : color illustrations |
| Series |
IMF working paper ; WP/16/177 |
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IMF working paper ; WP/16/177.
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| Contents |
Cover; CONTENTS; I. INTRODUCTION; II. STYLIZED FACTS ON PRIVATE CAPITAL FLOWS TO DEVELOPING COUNTRIES; III. DATA; IV. EMPIRICAL ANALYSIS AND RESULTS; V. CONCLUSION; REFERENCES; FIGURES; 1. Capital Flows to LIDCs, 2000-2014; 2. Portfolio Flows to Developing Countries Sub-groups, 2000-2014; 3. Annual Portfolio Flows to Developing Countries Subgroups; 4. EM and FM Bond Index Levels; TABLES; 1. Summary Statistics; 2. Correlation Matrix; 3. Illustration of DiD estimation; 4. Hypothesis 1 Results: Catching up on Capital Flows; 5. FM Sensitivity to Global Risk Aversion; 6. ICAPM Estimation Results |
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APPENDICESA. LIDCs; B. Sub-Groups; C. Deriving a Frontier Market Group Combining IMF and Market Analysts Classifications; D. Definition of Variables; E. Financial Integration, CAPM, Sub-Groups; F. Econometric Framework and Identification Strategy; G. Additional Regression Tables |
| Summary |
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 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 |
| Notes |
"August 2016." |
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At head of title: International Monetary Fund, Finance Department |
| Bibliography |
Includes bibliographical references (pages 25-27) |
| Notes |
Description based on online resource; title from pdf title page (IMF.org Web site, viewed October 4, 2016) |
| Subject |
Money market -- Developing countries
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Economic development -- Developing countries
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Capital movements -- Developing countries
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Capital movements
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Economic development
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Economic history
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Money market
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| SUBJECT |
Developing countries -- Economic conditions.
http://id.loc.gov/authorities/subjects/sh85037344
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| Subject |
Developing countries
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| Form |
Electronic book
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| Author |
Hacibedel, Burcu, 1976- author, (IMF staff)
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Nkusu, Mwanza, author, (IMF staff)
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International Monetary Fund, publisher.
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International Monetary Fund. Finance Department, issuing body.
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| ISBN |
9781475529548 |
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1475529546 |
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9781475529654 |
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1475529651 |
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