It takes the average reader and 31 minutes to read Global Financial Shocks and Foreign Asset Repatriation: Do Local Investors Play a Stabilizing Role? by Gustavo Adler
Assuming a reading speed of 250 words per minute. Learn more
We study the dynamic response of gross capital flows in emerging market economies to different global financial shocks, using a panel vector-autoregressive (PVAR) setting. Our focus lies primarily on the potentially stabilizing role played by domestic investors in offsetting the response of foreign investors to global shocks. We find evidence of such role, but its existence and magnitude depend on the nature of the shock. Local investors play a meaningful stabilizing role in the face of global uncertainty shocks, as well as shocks to long-term U.S. interest rates. However, while in the former case, sizeable asset repatriation largely offsets the retrenchment of non-residents, in the latter case the extent of the offsetting is much more limited. Meanwhile, residents and non-resident behave alike in response to short-term U.S. interest rate shocks, pulling capital away from emerging markets, although magnitudes are not economically significant. The results shed light on the potential impact of the Fed’s QE tapering on emerging market economies.
Global Financial Shocks and Foreign Asset Repatriation: Do Local Investors Play a Stabilizing Role? by Gustavo Adler is 31 pages long, and a total of 7,781 words.
This makes it 10% the length of the average book. It also has 10% more words than the average book.
The average oral reading speed is 183 words per minute. This means it takes and 42 minutes to read Global Financial Shocks and Foreign Asset Repatriation: Do Local Investors Play a Stabilizing Role? aloud.
Global Financial Shocks and Foreign Asset Repatriation: Do Local Investors Play a Stabilizing Role? is suitable for students ages 8 and up.
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