Abstract
In this paper we care about the determinant of capital account crises. We use the panel data of 207 countries and areas for 1970-2007 to estimate a series of probit equations to analyze whether the economic development and foreign economic policies are the determinant of large contractions of international capital flows. We find that higher development level, growth rate, domestic demand and the proportion of service industry reduces the probability of capital account crises. Foreign economic policies such as exchange rate system, degree of financial openness, foreign trade structure, affect the probability of international capital reversal, but the effect degree is restricted by the economic development in different degree.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
