Sudden Stops of International Fund Flows: Occurrence and Magnitude

30 Pages Posted: 24 Jan 2019

See all articles by Suxiao Li

Suxiao Li

Industrial and Commercial Bank of China (ICBC)

Jakob de Haan

University of Groningen - Faculty of Economics and Business; De Nederlandsche Bank; CESifo (Center for Economic Studies and Ifo Institute)

Bert Scholtens

University of Groningen - Department of Finance & Accounting

Date Written: February 2019

Abstract

Using data of 65 economies from January 2000 (2008) to June 2015, we examine the covariates of sudden stops in fund equity and bond flows. Our results suggest that global, contagion and domestic factors are all related to the likelihood of sudden stops. For sudden stops in equity flows, global factors play a more important role in high‐income economies. For sudden stops in bond flows, global variables are the most important covariates in emerging economies, whereas domestic variables play a more important role in high‐income economies. We also find that global and contagion factors are correlated to the magnitude of sudden stops.

Suggested Citation

Li, Suxiao and de Haan, Jakob and de Haan, Jakob and Scholtens, Bert, Sudden Stops of International Fund Flows: Occurrence and Magnitude (February 2019). Review of International Economics, Vol. 27, Issue 1, pp. 468-497, 2019, Available at SSRN: https://ssrn.com/abstract=3320795 or http://dx.doi.org/10.1111/roie.12385

Suxiao Li (Contact Author)

Industrial and Commercial Bank of China (ICBC) ( email )

Beijing
China

Jakob De Haan

University of Groningen - Faculty of Economics and Business ( email )

PO Box 800
Groningen, 9700 AV
Netherlands
+31 0 50 3633706 (Fax)

De Nederlandsche Bank ( email )

P.O. Box 98
Amsterdam, 1000 AB
Netherlands

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Bert Scholtens

University of Groningen - Department of Finance & Accounting ( email )

P.O. Box 800
9700 AH Groningen
Netherlands

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