What Factors Appear To Drive Private Capital Flows To Developing Countries
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What Factors Appear to Drive Private Capital Flows to Developing Countries?
Author | : Dipak Das Gupta |
Publisher | : World Bank Publications |
Total Pages | : 28 |
Release | : 2000 |
Genre | : Capital movements |
ISBN | : |
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Private portfolio flows to a country tend to rise in response to an increase in the current account deficit, a rise in foreign direct investment flows, higher per capita income, and growth performance. The most important determinant of official lending to a developing country seems to be the external current account balance or a change in international reserves in the country.
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