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 - 18 Sep 2016|
|Event||Rimini Conference in Economics and Finance - Waterloo, Canada|
Duration: 16 Sep 2016 → 18 Sep 2016
|Conference||Rimini Conference in Economics and Finance|
|Period||16/09/16 → 18/09/16|
Pinar, M., & Volkan, E. (2016). Effect of long-term policies, institutions, political risk and information flows on capital flows. Paper presented at Rimini Conference in Economics and Finance, Waterloo, Canada. http://rcef2016.rofea.org/wp-content/uploads/program/RCEF2016_Final_Program.pdf