This paper analyzes the empirical role of different types of long-term policies, institutional quality and political risk factors' impact on cross-country capital flows. Our findings suggest that the long-term institutional quality of countries explains the variation in capital flows across countries. Even though the long-term institutional quality factors are important to attract higher capital flows, none of these proxies explain the Lucas paradox (i.e., why poor countries receive relatively low levels of capital flows).
|Publication status||Published - 14 Nov 2015|
|Event||2nd Annual BIT Global Congress of Knowledge Economy - Qingdao, China|
Duration: 13 Nov 2015 → 15 Nov 2015
|Conference||2nd Annual BIT Global Congress of Knowledge Economy|
|Period||13/11/15 → 15/11/15|
Pinar, M., & Volkan, E. (2015). Effect of Institutions and Globalization on the Capital Flows. Paper presented at 2nd Annual BIT Global Congress of Knowledge Economy, Qingdao, China. http://www.bitcongress.com/gcke2015/Program.asp