NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Globalization and the Increasing Correlation between Capital Inflows and Outflows

J. Scott Davis, Eric van Wincoop

NBER Working Paper No. 23671
Issued in August 2017
NBER Program(s):International Finance and Macroeconomics

We document that the correlation between capital inflows and outflows has increased substantially over time in a sample of 128 advanced and developing countries. We provide evidence that this is a result of an increase in financial globalization (stock of external assets and liabilities). This dominates the effect of an increase in trade globalization (exports plus imports), which reduces the correlation between capital inflows and outflows. In the context of a two-country model with 14 shocks we show that the theoretical impact of financial and trade globalization on the correlation between capital inflows and outflows is consistent with the data.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23671

Published: J. Scott Davis & Eric Van Wincoop, 2018. "Globalization and the increasing correlation between capital inflows and outflows," Journal of Monetary Economics, .

Users who downloaded this paper also downloaded* these:
Lordan and Neumark w23667 People Versus Machines: The Impact of Minimum Wages on Automatable Jobs
Gorodnichenko and Ng w23672 Level and Volatility Factors in Macroeconomic Data
Frankel w23663 Systematic Managed Floating
Foster, Grim, Haltiwanger, and Wolf w23666 Macro and Micro Dynamics of Productivity: From Devilish Details to Insights
Pastor, Stambaugh, and Taylor w23670 Fund Tradeoffs
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us