Search results for "capital account"

showing 6 items of 6 documents

What determines the likelihood of structural reforms?

2015

We use data for a panel of 60 countries over the period 1980–2005 to investigate the main drivers of the likelihood of structural reforms. We find that: (i) external debt crises are the main trigger of financial and banking reforms; (ii) inflation and banking crises are the key drivers of external capital account reforms; (iii) banking crises also hasten financial reforms; and (iv) economic recessions play an important role in promoting the necessary consensus for financial, capital, banking and trade reforms, especially in the group of OECD-countries. Additionally, we also observe that the degree of globalisation is relevant for financial reforms, in particular in the group of non-OECD cou…

MacroeconomicsG28Economics and EconometricEconomics and EconometricsCrisis episodemedia_common.quotation_subjectCrisis episodesRecessionPolitical setupSocial SciencesFinancial systemGlobalisationRecessionPoliticsGlobalization0502 economics and business050602 political science & public administrationEconomics050207 economicsStructural reformmedia_commonP1105 social sciences1. No povertyRecessionsSettore SECS-P/02 Politica EconomicaP16External debtCapital account0506 political scienceStructural reforms8. Economic growthPolitical Science and International Relations
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Current Account Adjustment and Retained Earnings

2018

This paper develops a formal strategy to calculate current accounts with retained earnings (RE) on equity investment and analyzes their adjustment during the global financial crisis. RE are the part of companies' profits which are reinvested and not distributed to shareholders as dividends. International statistical standards treat RE on foreign direct investment and RE on portfolio investment differently: while the former enter the current and financial account, the latter do not. We show that this differential treatment strongly affects current accounts of several advanced economies, frequently referred to as financial centers, with large positions in equity (portfolio) investment. Our em…

Retained earningsFinancial crisisEconomicsPortfolioCurrent accountMonetary economicsForeign direct investmentCapital accountPortfolio investmentInvestment (macroeconomics)Federal Reserve Bank of Dallas, Globalization Institute Working Papers
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Financial Globalization, Fiscal Policies and the Distribution of Income

2020

This paper provides evidence that financial globalization—liberalization of the capital account—makes income distribution more uneven by raising the share of income that goes to the richest income deciles. We also offer evidence that changes in domestic fiscal policies in the aftermath of financial globalization are one channel through which these distributional effects could occur. Specifically, we show that episodes of capital account liberalization are followed by greater fiscal consolidation and reduced fiscal redistribution, both of which lead to increased inequality.

Economics and Econometrics050208 financeInequalitymedia_common.quotation_subject05 social sciencesSettore SECS-P/02 Politica EconomicaMonetary economicsCapital account liberalizationFiscal policyDecileTop income sharesConsolidation (business)InequalityIncome distribution0502 economics and businessEconomics050207 economicsFinancial globalizationFiscal policyFinancial globalizationmedia_commonComparative Economic Studies
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The distributional effects of capital account liberalization

2018

Abstract Episodes of account liberalization increase the Gini measure of inequality, based on panel data estimates for 149 countries from 1970 to 2010. These episodes are also associated with a persistent increase in the share of income going to the top. We investigate three channels through which these impacts could occur. First, the impact of liberalization on inequality is stronger where credit markets lack depth and financial inclusion is low; positive impacts of liberalization on poverty rates also vanish when financial inclusion is low. Second, the impact on inequality is also stronger when liberalization is followed by a financial crisis. Third, liberalization seems to alter the rela…

Financial inclusionEconomics and Econometrics050208 financeGlobalization Inequality Capital Account Openness Crises Institutions.LiberalizationInequalitymedia_common.quotation_subject05 social sciencesEconomic liberalizationSettore SECS-P/02 Politica EconomicaInternational economicsDevelopmentBargaining power0502 economics and businessFinancial crisisEconomicsWage share050207 economicsPanel datamedia_commonJournal of Development Economics
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The Aggregate and Distributional Effects of Financial Globalization: Evidence from Macro and Sectoral Data

2018

We take a fresh look at the aggregate and distributional effects of policies to liberalize international capital flows—financial globalization. Both country- and industry-level results suggest that such policies have led on average to limited output gains while contributing to significant increases in inequality—that is, they pose an equity–efficiency trade-off. Behind this average lies considerable heterogeneity in effects depending on country characteristics. Liberalization increases output in countries with high financial depth and those that avoid financial crises, while distributional effects are more pronounced in countries with low financial depth and inclusion and where libera…

Economics and Econometrics050208 financeInequalityLiberalizationElasticity of substitutionmedia_common.quotation_subject05 social sciencesAggregate (data warehouse)Monetary economicsCapital accountGlobalizationEconomic inequalityCost of capitalAccountingCapital (economics)capital account inequality0502 economics and businessEconomicsGeneral Earth and Planetary SciencesWage share050207 economicsMacroFinanceGeneral Environmental Sciencemedia_commonJournal of Money, Credit and Banking
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Current account adjustment and retained earnings

2019

First published online: 04 March 2019 This paper develops a formal strategy to calculate current accounts with retained earnings ( RE) on equity investment and analyzes their adjustment during the global financial crisis. RE are the part of companies' profits which is reinvested and not distributed to shareholders as dividends. International statistical standards treat RE on foreign direct investment and RE on portfolio investment differently: while the former enter the current and financial account, the latter do not. We show that this differential treatment strongly affects current accounts of several advanced economies, frequently referred to as financial centers, with large positions in…

Economics and EconometricsRetained earnings05 social sciencesForeign direct investmentMonetary economicsCurrent accountPortfolio investmentCapital accountInvestment (macroeconomics)0502 economics and businessFinancial crisisEconomicsPortfolio050207 economicsFinance050205 econometrics
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