How development threshold drives capital flows : a cross-country study
This thesis provides an empirical study on four measures of capital flows---total capital inflows and outflows, net capital outflows and capital flight--- from a panel of 130 countries over 24 years. The purpose of this thesis is to compare these types of capital flows to see their different pattern...
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| Format: | Thesis |
| Language: | English |
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2010
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| Online Access: | https://hdl.handle.net/10356/21191 |
| _version_ | 1826121824566509568 |
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| author | Ding, Ding |
| author2 | Yothin Jinjarak |
| author_facet | Yothin Jinjarak Ding, Ding |
| author_sort | Ding, Ding |
| collection | NTU |
| description | This thesis provides an empirical study on four measures of capital flows---total capital inflows and outflows, net capital outflows and capital flight--- from a panel of 130 countries over 24 years. The purpose of this thesis is to compare these types of capital flows to see their different patterns and relationship with economic fundamentals for countries of various stages of development. According to both cross-sectional and panel regression estimation results, the three types of capital flows are all positively correlated with income levels, except for capital flight which demonstrates a non-linear relationship with economic development. In general, rich countries experience high capital flows in both directions and high net capital outflows, while poor countries experience lower capital flows but suffer from high outward capital flight. Using the Hansen threshold estimation method, I identify a three-stage threshold effect of economic development on capital flight: for low-income countries, capital flight increases as the economy grows; only after the economy passes a certain threshold level, capital flight will decrease as the economy grows. The regression results also suggest that financial openness may stimulate overall capital flows but does not have strong effects on shaping capital flight. Moreover, high growth rate and net capital inflows are also positively correlated. |
| first_indexed | 2024-10-01T05:38:31Z |
| format | Thesis |
| id | ntu-10356/21191 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T05:38:31Z |
| publishDate | 2010 |
| record_format | dspace |
| spelling | ntu-10356/211912020-10-29T18:12:59Z How development threshold drives capital flows : a cross-country study Ding, Ding Yothin Jinjarak School of Humanities and Social Sciences DRNTU::Social sciences::Economic theory::Macroeconomics This thesis provides an empirical study on four measures of capital flows---total capital inflows and outflows, net capital outflows and capital flight--- from a panel of 130 countries over 24 years. The purpose of this thesis is to compare these types of capital flows to see their different patterns and relationship with economic fundamentals for countries of various stages of development. According to both cross-sectional and panel regression estimation results, the three types of capital flows are all positively correlated with income levels, except for capital flight which demonstrates a non-linear relationship with economic development. In general, rich countries experience high capital flows in both directions and high net capital outflows, while poor countries experience lower capital flows but suffer from high outward capital flight. Using the Hansen threshold estimation method, I identify a three-stage threshold effect of economic development on capital flight: for low-income countries, capital flight increases as the economy grows; only after the economy passes a certain threshold level, capital flight will decrease as the economy grows. The regression results also suggest that financial openness may stimulate overall capital flows but does not have strong effects on shaping capital flight. Moreover, high growth rate and net capital inflows are also positively correlated. DOCTOR OF PHILOSOPHY (HSS) 2010-03-22T06:59:12Z 2010-03-22T06:59:12Z 2010 2010 Thesis Ding, D. (2010). How development threshold drives capital flows : a cross-country study. Doctoral thesis, Nanyang Technological University, Singapore. https://hdl.handle.net/10356/21191 10.32657/10356/21191 en 181 p. application/pdf |
| spellingShingle | DRNTU::Social sciences::Economic theory::Macroeconomics Ding, Ding How development threshold drives capital flows : a cross-country study |
| title | How development threshold drives capital flows : a cross-country study |
| title_full | How development threshold drives capital flows : a cross-country study |
| title_fullStr | How development threshold drives capital flows : a cross-country study |
| title_full_unstemmed | How development threshold drives capital flows : a cross-country study |
| title_short | How development threshold drives capital flows : a cross-country study |
| title_sort | how development threshold drives capital flows a cross country study |
| topic | DRNTU::Social sciences::Economic theory::Macroeconomics |
| url | https://hdl.handle.net/10356/21191 |
| work_keys_str_mv | AT dingding howdevelopmentthresholddrivescapitalflowsacrosscountrystudy |