Do Capital Flows Respond to Risk and Return?

Do Capital Flows Respond to Risk and Return?

This paper explores empirically the role of risk and return in the observed evolution of net foreign asset positions of industrial and developing economies. The paper adopts a dynamic approach in which investors' portfolios adjust gradually to...

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Bibliographic Details
Main Authors:	Calderon, Cesar, Loayza, Norman, Serven, Luis
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	CAPITAL FLOWS CAPITAL CONTROLS PER CAPITA INCOME ASSET OWNERSHIP DIVERSIFICATION GROSS DOMESTIC PRODUCT PORTFOLIO COMPOSITION PORTFOLIO INVESTMENT FLOWS ANNUAL OBSERVATIONS ASSETS BALANCE OF PAYMENTS BONDS CAPACITY BUILDING CENTRAL BANK DEBT DEVELOPMENT INDICATORS DOMESTIC INVESTMENT ECONOMIC ACTIVITY ECONOMIC PERFORMANCE EMERGING MARKETS EMPIRICAL ANALYSIS EQUILIBRIUM EQUILIBRIUM MODELS EXCHANGE RATE EXPECTED RETURN EXPECTED RETURNS EXPORTS FACTOR MARKETS FINANCIAL MARKETS FOREIGN ASSETS FOREIGN CURRENCY FOREIGN INVESTMENT FOREIGN INVESTORS GDP GDP PER CAPITA GROWTH RATE HUMAN CAPITAL IMPERFECT INFORMATION IMPORTS INCOME INDUSTRIAL ECONOMIES INFLATION IRREVERSIBILITY LABOR INPUTS LOW-INCOME COUNTRIES MACROECONOMICS MARGINAL COSTS MARKET FACTORS MARKET INCENTIVES MIDDLE INCOME COUNTRIES NATURAL RESOURCES OPTIMIZATION PERMANENT INCOME PERMANENT INCOME HYPOTHESIS POLICY RESEARCH PORTFOLIO PROFITABILITY PROPERTY RIGHTS REAL GDP RISK MEASUREMENT SCALE ECONOMIES TERMS OF TRADE TIME SERIES TOTAL FACTOR PRODUCTIVITY TRANSACTION COSTS WEALTH PORTFOLIO INVESTMENT FLOWS ANNUAL OBSERVATIONS
Online Access:	http://documents.worldbank.org/curated/en/2003/05/2390970/capital-flows-respond-risk-return http://hdl.handle.net/10986/18215

Internet

http://documents.worldbank.org/curated/en/2003/05/2390970/capital-flows-respond-risk-return
http://hdl.handle.net/10986/18215

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