Friday, October 28, 2016
Cross border Capital is frisky not fixed ...there is no features of real substance between portfolio and direct investment
""FDI inflows and outflows are highly correlated, even at high frequency and using different methodologies. FDI flows to emerging-market economies appear to respond to the US policy rate, even at high frequency. This suggests that “measured” FDI gross flows are quite different from true FDI flows and may reflect flows through rather than to the country, with stops due in part to (legal) tax optimization. This must be a warning to both researchers and policymakers."
Posted by Owen Paine at 7:14 AM