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Revisiting the relationship between cross‐border capital flows and credit
Author(s) -
Carvalho Daniel
Publication year - 2021
Publication title -
international finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 39
eISSN - 1468-2362
pISSN - 1367-0271
DOI - 10.1111/infi.12388
Subject(s) - economics , perspective (graphical) , corporation , capital (architecture) , capital flows , emerging markets , composition (language) , monetary economics , finance , market economy , geography , archaeology , artificial intelligence , computer science , liberalization , linguistics , philosophy
A broad perspective on the sectoral composition of the domestic borrower and recipients of capital flows is needed to deepen the understanding of the mechanisms through which cross‐border capital flows interact with credit provision. Exploring this detail reveals stark differences across (i) credit measures that include only lending by banks and those that encompass all lenders (ii) the sum of all private borrower sectors versus nonfinancial corporation and household credit (iii) advanced economies and emerging markets (iv) instrument and sectoral composition of flows.