Determinants and Contagion in Private Capital Flows: Preliminary Evidence from the 1970s and 1990s

  • Leornardo Hernández Central Bank of Chile
  • Pamela Mellado Ministry of Economics
  • Rodrigo Valdés Central Bank of Chile

Abstract

This paper studies the determinants of private capital flows to developing countries during the last two episodes of large inflows, the late 1970s-early 1980s and the 1990s. The paper also tests for contagion effects in capital flows among recipient countries, and tries to identify specific channels through which such effects can occur. It tests for neighborhood effects, trade-related effects, and for contagion based on the countries having similar macroeconomic indicators. The results show strong evidence for the first two effects during the 1990s, and indicate that the third effect varies depending on the type of capital flow.
How to Cite
Hernández, L., Mellado, P., & ValdésR. (1). Determinants and Contagion in Private Capital Flows: Preliminary Evidence from the 1970s and 1990s. Economic Analysis Review, 17(1), 21-44. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/13
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Articles