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Private Capital Flows and Economic Development: A Cross-Sectional Analysis of Asian and Latin American Countries

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Date Issued:
1997
Summary:
After the 1980s debt crisis had officially come to an end, most developing nations in Asia and Latin America successfully reentered the global capital market. Private capital flows into these regions surged to unprecedented heights. Present paper gives an overview of what gave rise to this sudden come-back of external finance to the developing world, why its composition and geographical dispersion had changed, and how it affected the macroeconomic environment of the recipient nation. Furthermore, a cross-section econometric analysis is applied to thirty-four countries for the early 1990s, to determine the effect of private inflows on the growth rate of real GDP, as a proxy for economic development, in the context of a standard neoclassical growth equation framework. Results confirm the favorable impact of portfolio investment, but foreign direct investment appears to hinder economic growth. An attempt is made to interpret these results and compare them with existing empirical research.
Title: Private Capital Flows and Economic Development: A Cross-Sectional Analysis of Asian and Latin American Countries.
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Name(s): Salome, Helena Johanna
Yuhn, Ky-hyang, Thesis advisor
Florida Atlantic University, Degree grantor
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Date Issued: 1997
Publisher: Florida Atlantic University
Place of Publication: Boca Raton, Fla.
Physical Form: application/pdf
Extent: 115 p.
Language(s): English
Summary: After the 1980s debt crisis had officially come to an end, most developing nations in Asia and Latin America successfully reentered the global capital market. Private capital flows into these regions surged to unprecedented heights. Present paper gives an overview of what gave rise to this sudden come-back of external finance to the developing world, why its composition and geographical dispersion had changed, and how it affected the macroeconomic environment of the recipient nation. Furthermore, a cross-section econometric analysis is applied to thirty-four countries for the early 1990s, to determine the effect of private inflows on the growth rate of real GDP, as a proxy for economic development, in the context of a standard neoclassical growth equation framework. Results confirm the favorable impact of portfolio investment, but foreign direct investment appears to hinder economic growth. An attempt is made to interpret these results and compare them with existing empirical research.
Identifier: FA00000310 (IID)
Collection: FAU Electronic Theses and Dissertations Collection
Note(s): Thesis (M.S.)--Florida Atlantic University, 1997.
College of Business
Subject(s): Capital movements--Latin America
Capital movements--Asia
Latin America--Economic conditions--1982-
Asia--Economic conditions--1945-
Saving and investment--Latin America
Saving and investment--Asia
Held by: Florida Atlantic University Libraries
Persistent Link to This Record: http://purl.flvc.org/fau/fd/FA00000310
Sublocation: Digital Library
Use and Reproduction: Copyright © is held by the author, with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
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Host Institution: FAU
Is Part of Series: Florida Atlantic University Digital Library Collections.