Capital Flows

The paper intends to analyze aspects of international economic order that are relevant to understand the integration of underdeveloped countries. Its main hypothesis is that globalization is the result of financial liberalization at the domestic level and of progressive capital mobility in the international field. To characterize globalization different aspects are examined, such as the influence of financial liberalization on

En septiembre de 2007 se hizo evidente una grave crisis financiera en los países desarrollados debido a graves errores de política económica. Aun contra su propia ideología, los gobiernos no han escatimado medidas para reducir sus efectos, no han logrado contenerla y avanza hacia una recesión mundial de profundidad y duración inciertas. Ya ha producido cambios en los paradigmas teóricos y prácticos que han dominado la academia y la política en las últimas tres décadas. También tendrá fuertes efectos en los frágiles equilibrios económicos, sociales y políticos de los países en desarrollo, en particular de América Latina por su dependencia de la producción de materias primas, remesas y flujos de capitales externos que se están reduciendo rápidamente. La crisis llevará a una nueva relación Estado-mercado y a nuevos paradigmas con fuerte influencia keynesiana, y de ella nacerá una nueva oportunidad para América Latina si logra consolidar una nueva manera de gestionar su economía.

Although the subprime crisis regenerated interest in and stimulated debate about how to study the politics of global finance, it has not sparked the development of new approaches to International Political Economy (IPE), which remains firmly rooted in actor-centered models. We develop an alternative network-based approach that shifts the analytical focus to the relations between actors. We first depict the contemporary global financial system as a network, with a particular focus on its hierarchical structure. We then explore key characteristics of this global financial network, including how the hierarchic network structure shapes the dynamics of financial contagion and the source and persistence of power. Throughout, we strive to relate existing research to our network approach in order to highlight exactly where this approach accommodates, where it extends, and where it challenges existing knowledge generated by actor-centered models. We conclude by suggesting that a network appr...

It has been a quarter century since India had embarked on the phase of globalisation through a series of macroeconomic reforms started in 1991. In this paper we have analysed the extent and trends of India’s economic integration and discussed the channels through which the process of economic integration has been spread and the factors that have facilitated the integration process in the country. The results show that the pace of economic integration in India has accelerated only in the post-2001 period and international trade in goods and services has played a significant role in the integration process. The paper also unveils that India still continues to maintain significant restrictions in international trade and capital flows, which limits its economic integration with the world.

This paper examines the mobility of capital within fourteen (14) ECOWAS Members over the period 1980-2011 using Feldstein-Horioka’s Model. First, we investigate the free-flow of capital within the ECOWAS States, and secondly, we analyze the capital flows accounting the governance of state: high governance (country GOUV1) and low governance (GOUV2 countries). Using an autoregressive lag model, we estimate the coefficients of money savings. The results show that the capital is relatively more fluid within ECOWAS comparing to Europeans developed countries. Specifically, capital flows are more mobile in non-UEMOA countries and countries’ GOUV1 than in those of WAEMU and countries’ GOUV2. Further, the results show that the common currency is not a determinant of the free-flow of capital within the ECOWAS while the good governance is a fundamental factor.

A central tenet in sociology holds that positions in social structure influence the attitudes, behaviors, and outcomes of the actors occupying those positions. Though this proposition underlies much sociological thinking, perhaps the clearest instantiation of it appears in the literature collectively referred to as 'social network theory'. Research in this area investigates both the structure of the relations between social

This work constitutes a theoretically-informed empirical analysis of the spatial characteristics of the short-term rentals’ market and explores their linkage with shifts in the wider housing market within the context of a south-eastern EU metropolis. The same research objective has been pursued for a variety of international paradigms; however, to the best of our knowledge, there has not been a thorough and systematic study for Athens and its neighborhoods. With a theoretical framework that draws insight from the political-economic views of Critical Geography, this work departs from an assessment of Airbnb listings, and proceeds inquiring the expansion of the phenomenon with respect to the rates of long-term rent levels in the neighborhoods of Central Athens, utilizing relevant data. The geographical framework covers the City of Athens as a whole, an area undergoing profound transformations in recent years, stemming from diverse factors that render the city one of the most dynamic destinations of urban tourism and speculative land investment. The analysis reveals a prominent expansion of the short-term rental phenomenon across the urban fabric, especially taking ground in hitherto underexploited areas. This expansion is multifactorial, asynchronous and exhibits signs of positive relation with the long-term rentals shifts; Airbnb not only affects already gentrifying neighborhoods, but contributes to a housing market disruption in non-dynamic residential areas.

An energetic debate on the danger of a global currency war has flared up in recent months, stoked by a renewed move to “quantitative easing” in the United States, resurgent capital flows to developing countries and strong upward pressure on emerging market currencies ...

This paper is aimed at analyzing the relationship between exchange rate and Foreign Institutional Investment in India. The data comprises with daily data of exchange rate and net foreign institutional investment for the span of 5 years i.e. April 2009 to march 2014. While using Unit Root it was found that FII's is stationary at level I(0), whereas exchange rate in terms of Us-Dollar is non-stationary at level and to make it stationary it is differenced at order one I(1). Further analysis of causal relationship through Granger Causality depicts that there exists bidirectional relationship between exchange rate and Foreign Institutional Investment in India.

This paper explores whether factors that affect Foreign Direct Investment (FDI) in developing countries affect countries in sub-Saharan Africa (SSA) differently. The results indicate that: (a) a higher return on investment and better infrastructure have a positive impact on FDI to non-SSA countries, but have no significant impact on FDI to SSA; (b) openness to trade promotes FDI to SSA and non-SSA countries; however, the marginal benefit from increased openness is less for SSA. These results imply that Africa is different—suggesting that policies that have been successful in other regions may not be equally successful in Africa.

This article views Illicit Financial Flows (IFFs) as any illegal and corrupt
practice to acquire money without the due process that is in line with
international financial and trade regulatory frameworks. Based on this
working definition, the article explores IFFs in the mining sectors in four
countries (the Republics of Botswana, Namibia, South Africa and Zimbabwe) with a specific focus on the socio-economic implications for communities in the mining or former mining areas. Measurement issues are also attempted. Indeed, IFFs have severe implications for the communities (as for countries). Although the results are mixed, regarding the quantification of IFFs in the mining sector, it is clear that IFFs have major negative effects on welfare and political stability. Estimates show high levels of IFFs through trade misinvoicing for the mining sector in all the four countries.

This essay provides a historical geographical political economy of the deep connection between global capitalist finance, global flows of capital in the form of money, and modern imperialism. It argues that the money-power of capital to appro- priate living labor and extra-human natures has expressed itself in particular violent ways in the spaces of the global capitalist economy succes- sively referred to as the peripheries, the colonies, the Third World, and the Global South. The essay suggests that a crucial factor of explanation for the violence of the money-power of capital in those spaces is that they have retained a subordinate positionality in the network of space and power relations within which money-capital flows. This has been largely due to a multitude of imperialist policies and practices on the part of advanced capitalist economies and powerful agents and institutions located within them.

Altınok, E. (2016) Neoliberalleşme Sürecinde TOKİ ve Toplu Konut Biçiminde Kentleşmenin Ekonomi Politiği, Arredamento Mimarlık, Dosya: 1989’dan Bu Yana Ne Değişti?, Nisan 2016/300, s. 54-112.

1984 yılında kurulmuş olmasına karşın, 2003-2010 aralığında onlarca yasa düzenlemesiyle yetkileri genişletilen, bu sayede hem konut üretimine hem de bütünen kentleşme pratiğine planlama yetkilerini kullanarak yön veren bir devlet kurumu olarak TOKİ, 2000’lere damgasını vurmuştur. İstanbul örneğinde, iktidar partisi AKP tarafından ortaya atılan 'mega projeler'in (partinin kendi söylemiyle 'çılgın projeler'in) bugün neredeyse tamamı TOKİ aracılığıyla hayata geçirilmektedir. TOKİ’nin ağırlıkla, küresel kent söylemleriyle kentlere adeta monte edilmeye çalışılan prestijli projelere yönelmesi, bu yolla ve beraberinde geliştirdiği toplu konut projeleri ile kentlerin ekolojik eşiklerini hiçe sayarak kontrolsüz biçimde büyümesine aracılık etmesi, dönüşüm projeleriyle de yoksul kesimin içinde bulunduğu olumsuz şartları daha da derinleştirmesi, kurumun konut sektörü içindeki esas işlevinin sorgulanmasına sebep olmaktadır.
Bu yazıda, neoliberalizmin etkilerinin devlet yapısı ve piyasaları dönüştürmeye başladığı 1980 sonrası Türkiye’sinin, devlet, sermaye, toplumsal hareketler ve kentleşme denklemi içerisinde ele alınması amaçlanmıştır. Bugünün koşullarını çözümlememize kaynaklık eden, önemli bir kırılma noktası olarak tanımlanabilecek 2000-2001 krizi ve TOKİ’nin yeniden inşası sonrasındaki (son 16 yıl) dönüşümler ise yazının asıl odağını oluşturmaktadır.

Cet article étudie la mobilité des capitaux dans quatorze (14) États membres de la CEDEAO sur la période 1980-2011 utilisant l’approche de Feldstein-Horioka. D’une part, l’article s’interroge sur la libre circulation des capitaux dans les États de la CEDEAO, et d’autre part, il analyse cette mobilité des capitaux selon le niveau de gouvernance des États : niveau élevé de gouvernance (pays GOUV1) et niveau faible de gouvernance (pays GOUV2). Un modèle autorégressif à retards échelonnés est utilisé pour l’estimation des coefficients de rétention de l’épargne. Les résultats montrent que les capitaux sont relativement plus mobiles dans l’espace CEDEAO que dans les pays développés d’Europe. Plus spécifiquement, les capitaux sont plus mobiles au sein des pays non-UEMOA et les pays GOUV1 que dans les ceux de l’UEMOA et pays GOUV2. Les résultats montrent en outre que le monnaie commune n’est pas un élément déterminant de la libre circulation des capitaux au sein de la CEDEAO, alors que la bonne gouvernance est en un facteur fondamental.

By means of a theoretical post-Keynesian stock-flow consistent (SFC) model, we analyse the implications of the surges of capital inflows for the macroeconomic dynamics of financially opened peripheral economies. First, consistently with empirical evidence, our numerical simulation suggests that, during the surge, macroeconomic outcomes are mostly positive, with an acceleration of growth, but are promptly reversed afterwards. In the medium run, GDP level permanently decreases, current account quantitatively and qualitatively deteriorates, international reserves drops and public debt increases. Second, we highlight that exchange rate appreciation during the surge is not a necessary condition for the negative medium run outcomes to emerge. Our interpretation of the results is that financial openness may be detrimental for peripheral economies, reinforcing their structural fragilities.

The 1990s witnessed a surge in private capital flows to developing countries--and a surge in financial crises. The most severe and regionally extensive has (to date) been East Asia's. The last six years has produced a wealth of research that now allows us to abstract policy lessons from the East Asian crisis and the difficulties in implementing them. These lessons span crisis prevention, management and resolution, and building a new international financial architecture with a regional focus. Progress in these areas would have helped prevent, or at least minimize, both the East Asian crisis and more recent crises.

The aim of research is to connecting Stock exchanges in the Western Balkans, in order to reduce transaction and post-transaction costs and increases transparency and liquidity, it is preferable in view of ekonomic interests of investors interested in investing in the region. Cooperation and exchange connectivity to standardize their business and interpersonal communication based on the exchange of information, according to the rules that apply in developed market economies, must be aimed at the establishment of a single financial market in the region, for a free flow of capital, and thus faster development of each individual market, the exchange of information relating to trading and prices. It is necessary to compromise strategy to strength domestic stock market, and their connection with other markets in the region. The partnership should ensure that regional and matriculation markets are focused on servicing the needs of major regional and international interest groups - institutional and retail investors, issuers and investment companies.

This paper considers the effects of a more or less trade and capital openness on the instability of the growth rate. Indicators of outward looking policies are estimated by eliminating the impact of structural factors through a panel standardization equation. Then indicators of growth instability are estimated. Open trade policies are assumed to be stabilizing because they improve the working

Despite increasing capital mobility and the subsequent difficulty in controlling exchange rates, intermediate exchange-rate regimes have remained widespread, especially in emerging and developing economies. This piece of evidence hardly fits the "impossible Trinity" theory arguing that it becomes difficult to control the exchange rate without a "hard" device when capital flows are freed. Calvo and Reinhart (2000) have suggested several explanations for such "fear of floating": exchange rate pass-through, liability dollarization, dollar invoicing of domestic and external transactions, and an underdeveloped market for currency hedging make it more desirable to stabilize the nominal exchange rate. However, the New-Keynesian model, which has become the main workhorse for studying exchange-rate regime choice since the 1990s, typically opposes fixed nominal pegs to free-floating regime, without considering intermediate regimes. We intend to fill this gap here...