A Study on International Capital Flow Determining Factor--The Case of Emerging Markets in Latin America

Abstract

The boom and bust capital flows to Latin America has received considerable amount attention: foreign direct investment and bank flows to the region and countries’ have been well-documented This paper aims to examine what the capital flows will flow to Latin America and what are the determining factor We find that U S interest rate could and global risk aversion index be key drivers on determinant the regional capital flow while countries own attitude toward foreign capital and instructional quality will also have impact on determine the capital flow to Latin America We use global factor and country-specific regression model and panel estimation to examine the factor impact on selected countries and region When we consider both global and country-specific factor the country’s own characteristic have more explanatory power over global factor

Date of Award	2018 Jan 18
Original language	English
Supervisor	Tse-Shih Wang (Supervisor)