Institutions and the External Capital Structure of Countries /

A widespread view holds that countries that finance themselves through foreign direct investment (FDI) and portfolio equity, rather than bonds and loans, are less prone to crises. But what determines countries' external capital structures? In a cross section of emerging markets and developing c...

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Bibliografske podrobnosti
Glavni avtor: Mauro, Paolo
Drugi avtorji: Faria, Andre
Format: Revija
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2004.
Serija:IMF Working Papers; Working Paper ; No. 2004/236
Online dostop:Full text available on IMF
Opis
Izvleček:A widespread view holds that countries that finance themselves through foreign direct investment (FDI) and portfolio equity, rather than bonds and loans, are less prone to crises. But what determines countries' external capital structures? In a cross section of emerging markets and developing countries, we find that equity-like liabilities (FDI and, especially, portfolio equity) as a share of countries' total external liabilities (or as a share of GDP) are positively and significantly associated with indicators of educational attainment, natural resource abundance, and especially, institutional quality. These relationships are robust to attempts to control for possible endogeneity, suggesting that better institutional quality may help improve countries' capital structures. The results might also provide an explanation for the observed correlation between institutional quality and the frequency of crises.
Opis knjige/članka:<strong>Off-Campus Access:</strong> No User ID or Password Required
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Fizični opis:1 online resource (31 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Dostop:Electronic access restricted to authorized BRAC University faculty, staff and students