The long-run effects of portfolio capital inflow booms in developing countries: permanent structural hangovers after short-term financial euphoria

cepal.bibLevelDocumento Completo
cepal.callNumberLC/TS.2018/96
cepal.divisionEngProduction, Productivity and Management Division
cepal.divisionSpaDivisión de Desarrollo Productivo y Empresarial
cepal.docTypeSeries
cepal.jobNumberS1800998_en
cepal.topicEngFINANCIAL AND MONETARY SECTOR
cepal.topicEngFOREIGN DIRECT INVESTMENT
cepal.topicSpaINVERSIÓN EXTRANJERA DIRECTA
cepal.topicSpaSECTOR FINANCIERO Y MONETARIO
cepal.workareaEngPRODUCTION, PRODUCTIVITY AND MANAGEMENT
cepal.workareaSpaDESARROLLO PRODUCTIVO Y EMPRESARIAL
dc.contributor.authorBotta, Alberto
dc.coverage.spatialEngLATIN AMERICA AND THE CARIBBEAN
dc.coverage.spatialSpaAMERICA LATINA Y EL CARIBE
dc.date.accessioned2018-12-06T15:33:53Z
dc.date.available2018-12-06T15:33:53Z
dc.date.issued2018-12-06
dc.description.abstractMost of the literature about the effects of portfolio capital inflows to developing countries focuses on how macroeconomic stability is affected. Very little has been said on the long-run consequences that temporary booms in portfolio capital flows may bear by affecting the productive structure, particularly manufacturing development, of developing countries. The present paper tries to partially fill this gap. We first build a simple theoretical model to show how booming portfolio inflows may interact with domestic speculation at home, giving rise to a climate of financial euphoria featuring an appreciating exchange rate and rising prices of domestic speculative assets. We also discuss that such euphoria hardly lasts forever, but rather ends up in a phase of heightened financial turmoil and volatility. As for the long run, we maintain the Kaldorian perspective according to which manufacturing plays a crucial role for the development process of backward economies.
dc.description.tableOfContentsAbstract .-- Introduction .-- I. Portfolio inflows in a two-sector economy with a “speculative” sector .-- II. Portfolio booms, exchange rate appreciation and medium-term financial cycles in developing countries .-- III. Possible long-run damages of volatile portfolio booms and unstable financial euphoria .-- IV. Some concluding policy implications.
dc.formatTexto
dc.format.extent42 páginas.
dc.format.mimetypeapplication/pdf
dc.identifier.unSymbolLC/TS.2018/96
dc.identifier.urihttps://hdl.handle.net/11362/44282
dc.language.isoeng
dc.physicalDescription42 p.
dc.publisherECLAC
dc.publisher.placeSantiago
dc.relation.isPartOfSeriesSerie Desarrollo Productivo
dc.relation.isPartOfSeriesNo221
dc.rights.coarDisponible
dc.subject.unbisEngCAPITAL
dc.subject.unbisEngCAPITAL MOVEMENTS
dc.subject.unbisEngFINANCIAL FLOWS
dc.subject.unbisEngSPECULATION
dc.subject.unbisEngBUSINESS CYCLES
dc.subject.unbisSpaCAPITAL
dc.subject.unbisSpaMOVIMIENTOS DE CAPITAL
dc.subject.unbisSpaCORRIENTES FINANCIERAS
dc.subject.unbisSpaESPECULACION
dc.subject.unbisSpaCICLOS ECONOMICOS
dc.titleThe long-run effects of portfolio capital inflow booms in developing countries: permanent structural hangovers after short-term financial euphoria
dc.type.coarlibro
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