Capital flows, trade and the role of the financial system

Amissah, E. ORCID: 0000-0002-2665-2264, 2018. Capital flows, trade and the role of the financial system. Modern Economy, 09 (09), pp. 1592-1617. ISSN 2152-7245

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Abstract

In this study, we examine the crucial role played by financial development in the relationship between trade and capital flows. We examine this relationship for 130 countries from 1980 to 2005 for different types of capital flows. We show that the relationship depends on the type of capital flows and the level of financial development. We observe a positive interaction between trade liberalisation and financial development for portfolio flows. In the case of FDI (Foreign Direct Investment), we observe an insignificant relationship. The FDI flows bypass the financial system as it flows into such countries because of other factors as side the level of the financial development.

Item Type: Journal article
Publication Title: Modern Economy
Creators: Amissah, E.
Publisher: Scientific Research Publishing
Date: 2018
Volume: 09
Number: 09
ISSN: 2152-7245
Identifiers:
NumberType
10.4236/me.2018.99099DOI
Rights: Copyright © 2018 by author and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution International License (CC BY 4.0).http://creativecommons.org/licenses/by/4.0/.
Divisions: Schools > Nottingham Business School
Record created by: Linda Sullivan
Date Added: 07 Nov 2018 14:40
Last Modified: 07 Nov 2018 14:40
URI: https://irep.ntu.ac.uk/id/eprint/34865

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