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SAILING THROUGH THIS STORM? CAPITAL FLOWS IN ASIA DURING THE CRISIS
Author(s) -
TILLE CÉDRIC
Publication year - 2012
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/j.1468-0106.2012.00593.x
Subject(s) - capital flows , economics , private capital , net capital rule , capital (architecture) , capital outflow , monetary economics , international economics , capital formation , financial capital , macroeconomics , market economy , geography , human capital , production (economics) , liberalization , archaeology
The 2007–2009 crisis has led to an unprecedented collapse in international capital flows. Asian economies were, however, relatively unaffected: the contraction in their capital flows was limited to the most acute phase of the crisis in late 2008, followed by a rapid rebound. We show that this reflects both Asia's structural characteristics, such as limited reliance on international banking, and Asian specificities in the form of a limited impact of international bank exposure on capital flows. We also find evidence of a connection between the use of reserves and variations in net private capital inflows.