Inflows of Capital to Developing Countries in the 1990s
Open Access
- 1 May 1996
- journal article
- Published by American Economic Association in Journal of Economic Perspectives
- Vol. 10 (2) , 123-139
- https://doi.org/10.1257/jep.10.2.123
Abstract
Half a decade has passed since the resurgence of international capital flows to many developing countries and history has, once again, shown that foreign investment is prone to repeated booms and busts. Mexico's 1994 crisis is but a recent example that highlights the vulnerability of capital-importing countries to abrupt reversals; thus, an aim of policy is to reduce that vulnerability. This paper discusses the principal causes, facts, and policies that have characterized capital inflows to Asia and Latin America. In particular, the authors examine what policies have proved useful in protecting these economies from the vagaries of international capital flow.Keywords
All Related Versions
This publication has 9 references indexed in Scilit:
- A New Breed of Exchange Rate Bands: Chile, Israel and MexicoEconomic Policy, 1994
- THE CAPITAL INFLOWS PROBLEM: CONCEPTS AND ISSUESContemporary Economic Policy, 1994
- Exchange rate hysteresis? Large versus small policy misalignmentsEuropean Economic Review, 1994
- Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External FactorsStaff Papers, 1993
- Restoration of Access to Voluntary Capital Market Financing: The Recent Latin American ExperienceStaff Papers, 1992
- The Perils of SterilizationStaff Papers, 1991
- Costly Trade Liberalizations: Durable Goods and Capital MobilityStaff Papers, 1988
- Capital Flight: A Response to Differences in Financial RisksStaff Papers, 1988
- Real Interest Rates, Home Goods, and Optimal External BorrowingJournal of Political Economy, 1983