6533b7d9fe1ef96bd126cf49

RESEARCH PRODUCT

MEDIUM-TERM DETERMINANTS OF INTERNATIONAL INVESTMENT POSITIONS: THE ROLE OF STRUCTURAL POLICIES

Stéphanie GuichardDavide FurceriElena Rusticelli

subject

MacroeconomicsEconomics and EconometricsInternational investmentInvestment PositionsForeign capitalGlobal imbalancesGeneral Business Management and AccountingMedium termF21 JEL Classifications: E6 [Capital flows structural policies global imbalances JEL Classifications]EconomicsCapital employedCapital flowsEmerging marketsFinancePanel data

description

This paper provides an empirical investigation of the medium-term determinants of international investment positions for a large sample of advanced and emerging economies. In addition to the usually considered drivers of foreign assets and liabilities, the analysis focuses on the role of structural policy indicators. Using cross-section and panel regression techniques the results suggest that structural policy settings are important medium-term drivers of capital flows, having a relatively large impact on gross and net foreign capital positions and on their composition. In particular, the results suggest that certain kinds of structural policy reform could help to narrow global imbalances, and to modify the composition of international capital flows towards more stable and productive sources.

yearjournalcountryeditionlanguage
2012-05-16Journal of International Commerce, Economics and Policy
https://doi.org/10.1142/s1793993312500123