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Push vs.  Pull Factors of Capital Flows Revisited: A Cross-country Analysis

Author

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  • Tae Soo Kang

    (Korea Institute for International Economic Policy (KIEP) Building C, Sejong National Research Complex, 370 Sicheongdaero, Sejong-si 30147, Korea)

  • Kyunghun Kim

    (Korea Institute for International Economic Policy (KIEP) Building C, Sejong National Research Complex, 370 Sicheongdaero, Sejong-si 30147, Korea)

Abstract
This paper examines the major determinants of net capital inflows. To account for meaningful differences in responses, 47 countries used for the empirical analysis are divided into advanced economies (AEs) and emerging market economies (EMEs). These countries are further divided into subgroups to consider the heterogeneous determinants for AEs and EMEs. Our empirical examination reveals notable heterogeneity across country groups. Both push and pull factors are statistically significant in AEs, but push factors play a larger role for EMEs, though pull factor influence is observed in a few EME subgroups. Our empirical findings are robust to alternative model specifications, alternative measures of capital flows and interest rates, as well as the use of an alternative sample period.

Suggested Citation

  • Tae Soo Kang & Kyunghun Kim, 2019. "Push vs.  Pull Factors of Capital Flows Revisited: A Cross-country Analysis," Asian Economic Papers, MIT Press, vol. 18(1), pages 39-60, Winter/Sp.
    • Handle: RePEc:tpr:asiaec:v:18:y:2019:i:1:p:39-60
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    Cited by:

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    2. Diego Alejandro Martínez Cruz & Philip Rory Symington Alzate, 2024. "Robust Assessment of External Vulnerabilities in an Emerging Market During Stress Scenarios," IHEID Working Papers 15-2024, Economics Section, The Graduate Institute of International Studies.
    3. Jung, Yunji & Kim, Juno & Kim, Kyunghun, 2024. "Whom is economic aid meant for? The push vs. pull determinant factors of official development assistance," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 173-195.

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