Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/203362 
Year of Publication: 
2017
Series/Report no.: 
ADB Economics Working Paper Series No. 522
Publisher: 
Asian Development Bank (ADB), Manila
Abstract: 
There is mixed evidence for the impact of international capital flows on financial sector's stability. This paper investigates the relationship between components of gross capital flows and various financial stability indicators for 16 emerging and newly industrialized economies. Departing from panel data methods, for each financial stability proxy, we employ systems of seemingly unrelated regression estimators to allow variation in the estimated relationship across countries, while permitting crossequation restrictions to be imposed within a country. The findings suggest that, after controlling for macroeconomic factors, there are significant effects of different gross capital flow measures on the financial stability proxies. However, the effects are not homogeneous across our sample economies and across flows. Country-specific financial and macroeconomic characteristics help to explain some of these differences.
Subjects: 
emerging economies
financial stability
international capital flows
JEL: 
E44
F41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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