Identifying factors that affect the flow of mutual fund capital and betweenmutualfund types hasthe potential, among others,to relief fund management and investors from unnecessary administrative costs. This study investigated the role media reported weather shocks have on socially responsible and conventional mutual trust funds’capital flow.The study also has compared the magnitude of influence media reported weather shocks has on capital flow between socially responsible-and convectional mutualtrustfunds.It gives conclusionafter empirically studying all accessible socially responsible mutual trust fundswith relevant accessible financial data, originated, and actively traded in the Swedish financial market with the Swedish currency (Kronor) as well as taking conventional mutual trustfundswith similar maturity. And, the study result shows that media reported weather shocks has statistically significant role in the flow of capital, on bothsocially responsible-and conventional mutual funds in Sweden. It also shows that there is no significant difference in the role media reported weather shocks play between the two fundtypes. The result is concurrent with Hirshleifer & Shumway (2003)’s study which indicate that weather affecting investors mood and behavior. The result is interesting as it implicates to the psychological and emotional factorsplaying a significant role in affecting the flow of investment capital in general, in contrast to the rational economic behavior characterized by fund return and risk performance.

Using the monthly data between 1999 and 2007 in Taiwan, we examine the relationship of exchange rate, trade and capital flow in this paper. Granger causality test and impulse response from vector autoregressive model are employed to obtain the short-run dynamics among the variables, and Johansen cointegration test and error correction model are applied to study the long-run equilibrium. This paper reconfirms the J-curve effect in the short run and the validity of Marshall-Lerner condition in the long run. Our results also show the negative correlation of capital flow and the nominal effective exchange rate. Limited by the slow adjustment speed of trade balance, exchange rate and capital flow are the major drives back to equilibrium when the system deviates from the long-run equilibrium. Further, the capital flow variables are the leading indicators of the others in the most cases. However, different capital flow variables induce different patterns of dynamics in the short-run.

This thesis focuses on exchange rates dynamics in Mexico, Turkey and South Korea. We examine the capital flow development in mentioned countries and currency dynamics of the Mexican Peso, Turkish Lira and Korean Won. The main goal of the paper is to evaluate the performance of these currencies in risk-on and risk-off episodes on a sample period from 1997 until 2016. We use analysis and comparison as a methodology for this paper, emphasizing on the relationship and causality between capital flow and exchange rates. We shall reveal that the examined currencies depreciate in risk-off periods and only the Korean Won appreciates in risk-on periods.

Development in European Union is showing that even despite high amount of effort in economic integration, differences in cross-country development are still at play. Indications about Lucas Paradox can be observed, due to inefficient flow of capital. Aim of this study is to quantify, whether this Lucas paradox is present in EU and how it contributes to convergence or divergence between countries. Comparison of panel VAR impulse-response functions is used for evaluation. Results suggests, that Lucas paradox can be identified between Euro area vs non-Euro area countries and Euro area core vs periphery. Furthermore, capital misallocation regarding these four groups prevents possible short-term economic convergence.

For late developing countries, using foreign capital to modernize its economy is akin to wielding a double-edge sword. It complements much needed funding and technology that laggards lack endogenously but presents risks of economic dependence or even political subordination. How to maximize the economic benefits meanwhile minimize the challenges thus presents a dauting challenge for political and economic elites in the developing world. An emerging herd of information companies that rise from contemporary China represents a fascinating case to explore how Chinese policy makers manage to resolve this tension. Economically, its third-world and post-socialist context means internal investment resources are scarce, thus hampering a capital- and technology-intensive industry to emerge. Politically, an authoritarian regime that is vulnerable and vigilant to the liberalizing potential of communicational popularization is by no means an advantage. My research investigates how China has managed to parlay foreign investment into a home-grown information industry between mid-1990s and 2020. I seek to explain how and why massive cross-border capital inflows into this sector, which potentially threats the regime, did not challenge Beijing’s authoritarian rule. Contrary to much of the scholarly literature, I find that the Chinese political elites apply a different mechanism of political control and censorship that targets the form of foreign capital inflow rather than informational content. Accordingly, I propose a theory of “capital filtration” to show how Chinese regulators “filter” foreign investment through an unarticulated, nationalistic, and two-pronged industrial strategy. On the one hand, Beijing allowed and supported China-based and Chinese-controlled firms to sidestep its inefficient and closed domestic securities market to seek financial investment from their counterparts in the Global North through shell companies registered in offshore financial centers. I call this new type of cross-border capital flow offshore domesticated foreign finance (ODFF). On the other hand, through stringent measures to restrict foreign direct investment (FDI) such as equity caps, approval red tape, national security review, and haphazard licensing and technology transfer requirements, Chinese regulators crippled foreign industrial investors’ market entry, operations, and competitiveness inside China. By bringing in ODFF while pushing out foreign corporate influence, capital filtration has ushered in a neo-triple alliance among policy makers in Beijing, China-based and Chinese-controlled information service companies, and transnational financial elites. It also minimized economic dependency and political subordination, which had hobbled previous late developers after liberalizing domestic capital markets, and made informational censorship easier. / Graduate / 2023-06-23

This thesis presents three essays on the main determinants and regulations of international capital flows. The essays contribute to an ongoing significant debate among scholars and practitioners on what determines international capital flows by examining the following issues: Global liquidity, market sentiment and financial stability indices; Global liquidity and capital flow regulations; and Global governance and gross capital flows dynamics. In the first essay, we explore the main determinants of global liquidity, measured using cross-border claims of banks, and establish the link between a variety of financial stability indices and global liquidity. For a sample of 149 countries between 2000 and 2016, we find that Bloomberg Financial Stability Indices are more powerful in explaining global liquidity than FRED Financial Stress Indices and the Euro Area Systemic Stress Composite Indicator (CISS). Moreover, both market sentiment indices, namely the US Conference Board Leading Economic Index (LEI) and the US IBD/TIPP Economic Optimism Index are economically and statistically significant on cross-border bank flows. The research provides useful insights on what market sentiment and financial stability indices are better to employ for financial markets surveillance and as such practice of investment management. We argue that anyone interested in using financial stability indices as indicators of financial conditions and the level of financial stress would benefit from tracking several indices and not just one. The second essay examines the effectiveness of capital controls and macroprudential policies as ways to manage the volume of international capital flows, controlling for other determinants. The findings show that capital controls imposed on inflows generally prevail over controls imposed on outflows in reducing the magnitude of capital flows. The results are consistent with the pecking order theory on capital flows and are connected with the riskiness of different asset classes. For a sample of 112 countries over 2000 and 2016, we find that FX and/or countercyclical reserve (RR_REV) and general countercyclical capital buffer requirements (CTC), reserve requirement ratios (RR) and concentration limits (CONC) are the most effective macroprudential policies for managing countries' exposures to global liquidity fluctuations. Moreover, progress is being made to reduce the systemic risks created by systemically important financial institutions (SIFIs) using macroprudential policies. The results reflect recent developments in Basel III regulations and shed light on the effective calibration of capital flow regulations to country-specific circumstances. The final essay examines the link between global governance indicators and patterns of gross capital flows, controlling for other determinants. For a sample of 67 countries between 2000 and 2016, we contribute to explain the existence of the Lucas paradox (1990) on "why doesn't capital flow from rich to poor countries" and the Feldstein-Horioka puzzle (1980). The findings show that institutional quality rather than the effect of diminishing returns of capital is a key explanation for the Lucas paradox. Finally, we provide new evidence on the relationship between the multidimensional nature of financial development and gross capital flows. The findings show the importance and predominance of financial institutions versus financial markets in the dissemination of international capital flows across counties.

關於「全球化」(Globalization)的現象在近幾年來掀起了一股研究的風潮，主流經濟學在看待「全球化」現象時，往往持正面與肯定的觀點。然而這樣的觀點卻使得全球化的負面效果被嚴重忽略，同時也使得全球化所帶來的矛盾與衝突被隱晦，因此有必要提出有別於主流經濟學的觀點，對於全球化所帶來的種種負面效果提出反思與批判。本文是從馬克思政治經濟學批判的角度，來檢視當前主流經濟學對於「資本流動」（Capital Flow）、「經濟危機」（Economy Crisis）和「全球化」(Globalization)現象的詮釋。並且從資本國際化的面向來解構這些現象所造成的迷思。而迷思的主要關鍵在於：無法看清資本主義矛盾的生產關係的本質。因此本文從資本主義的生產關係的分析開始，解析商品到貨幣，再由貨幣轉化為資本的過程。另外，本文從資本主義平均利潤率趨於下降的規律，以及其矛盾的生產關係所導致危機，來論證資本主義危機的必然性，進一步的驗證「資本國際化」的本質在於避免平均利潤率下降及資本主義危機發生。 　　在分析資本主義生產關係及危機之必然性之後，本文從解構主流經濟學對於「資本流動」、「經濟危機」、「全球化」的論述，論證「資本流動」與「全球化」現象實質上乃是是資本國際化的結果。一方面解構資本主義關係下，由資本國際化所引發的各種現象。另一方面破除現今所流行的「全球化」論述所帶來的迷思，點出「全球化」造成的矛盾之處。並進一步論證資本主義生產關係所導致的危機，是驅使「資本流動」與「全球化」的主要動力。而本文也希望透過馬克思的理論途徑，指出台灣「資本外移」的主因並非如主流經濟學所言，是由於台灣勞動力成本升高導致競爭力下滑。而是資本邏輯運作及其資本主義內部矛盾導致的結果，這乃是本文研究的主要目的。

Made available in DSpace on 2009-11-18T19:01:19Z (GMT). No. of bitstreams: 0 Previous issue date: 2004 / This paper analyses the effect of International capital flows and their behavior for emergent countries, focused in Brazilian financiai market. It considers that capital flows had dramatically increased, however their impact, proposals on changes in international market and capital controls has not been clear. Considering capital flows In comparison to portfolio investments and to direct investments, this paper, also aims to discuss and highlight questions whether the concepts that capital flows generally associated to portfolio investments are frequently connected with incidence of crises meanwhile the second have been associated with growth in some countries. / Esta dissertação procura avaliar, dentro de um contexto de economia globalizada, o comportamento dos fluxos de capitais estrangeiros para investimentos nas economias emergentes, com foco no Brasil e nos investimentos em portfólio. Considera que os fluxos desses capitais têm crescido, dramaticamente, nos últimos anos e que as propostas de reformulações do sistema financeiro internacional e a adoção de controles desses capitais não estão totalmente claras, merecendo maiores estudos. Por meio de comparação entre os fluxos para investimentos em portfólio e os direcionados para investimentos diretos, o texto, aborda e questiona também, conceitos que, geralmente, relacionam esses capitais à incidência de crises, enquanto que os fluxos de capitais para investimentos diretos são associados ao crescimento de alguns países.