Capital Flows Research Papers - Academia.edu (original) (raw)

This essay provides a historical geographical political economy of the deep connection between global capitalist finance, global flows of capital in the form of money, and modern imperialism. It argues that the money-power of capital to... more

This essay provides a historical geographical political economy of the deep connection between global capitalist finance, global flows of capital in the form of money, and modern imperialism. It argues that the money-power of capital to appro- priate living labor and extra-human natures has expressed itself in particular violent ways in the spaces of the global capitalist economy succes- sively referred to as the peripheries, the colonies, the Third World, and the Global South. The essay suggests that a crucial factor of explanation for the violence of the money-power of capital in those spaces is that they have retained a subordinate positionality in the network of space and power relations within which money-capital flows. This has been largely due to a multitude of imperialist policies and practices on the part of advanced capitalist economies and powerful agents and institutions located within them.

This article illuminates contemporary land-use and disposition struggles in New York City by tracing the history of land's passage between the private and public realms. The authors contend that government and community-controlled... more

This article illuminates contemporary land-use and disposition struggles in New York City by tracing the history of land's passage between the private and public realms. The authors contend that government and community-controlled nonprofit organizations should govern the disposition of the city's remaining public land supply, deliberately deploying this scarce resource to promote the well-being of the people and neighborhoods most at risk in a speculation-fueled real-estate environment.

An array of innovative financial and monetary institutional and policy initiatives recently emerged across the Global South at various spatial scales: (1) the deployment of national ‘self-insurance’ strategies such as large foreign... more

An array of innovative financial and monetary institutional and policy initiatives recently emerged across the Global South at various spatial scales: (1) the deployment of national ‘self-insurance’ strategies such as large foreign reserve accumulation, different forms of capital controls, and currency market interventions; (2) the multiplication of bilateral, sub-regional, and regional financial and monetary mechanisms, including currency-swaps and reserve-pooling arrangements, credit lines, bilateral aid, and development finance; (3) a growing participation and assertiveness in multilateral financial arrangements. After critically reviewing the existing literatures – the IPE of ‘policy space’ and the IPE of ‘financial statecraft’ – the paper deploys a ‘scalar-relational’ critical IPE approach and interprets these policy initiatives in terms of a crisis-driven production of ‘new state spaces’ across the Global South, in the context of the current period of credit-led capital accumulation. The paper argues that this process has been characterised by the contradictory extension, intensification and growing complexity of the tasks taken on by the capitalist state at various scale levels, resulting in the increasing entanglement of state power in the nested hierarchy of monetary relations, from the global scale to bodies and subjectivities.

This paper assesses some of the explanations that have been put forward for the global pattern of current account imbalances that has emerged in recent years: in particular, the large U.S. current account deficit and the large surpluses... more

This paper assesses some of the explanations that have been put forward for the global pattern of current account imbalances that has emerged in recent years: in particular, the large U.S. current account deficit and the large surpluses of the Asian developing economies. Based on the approach developed by Chinn and Prasad (2003), we use data for 61 countries during 1982-2003 to estimate panel regression models for the ratio of the current account balance to GDP. We find that a model that includes as its explanatory variables the standard determinants of current accounts proposed in the literature-–per capita income, relative growth rates, the fiscal balance, demographic variables, and economic openness-–can account for neither the large U.S. deficit nor large Asian surpluses of the 1997-2003 period. However, when we include a variable representing financial crises, which might be expected to restrain domestic demand and boost the current account balance, the model explains much of d...

Recent political economy scholarship has interpreted the recent resurgence of capital controls across the Global South as attempts by some developing countries to preserve their policy space to pursue heterodox economic policies. This... more

Recent political economy scholarship has interpreted the recent resurgence of capital controls across the Global South as attempts by some developing countries to preserve their policy space to pursue heterodox economic policies. This article critically engages with this literature and argues for the need to study capital controls in light of the social constitution and the class character of the capitalist state, money, and private capital flows. This argument is substantiated through a class analysis of the deployment of capital controls in Brazil from 1945 to 2014, which emphasizes the crucial role that capital controls have historically played in the reproduction of capitalist social relations and particular forms of class rule in Brazil.

Is national state policy-making more constrained by capitalist value-disciplines in emerging capitalist economies (ECEs) than it is in advanced capitalist countries? In order to explore this question, this article offers a spatialised... more

Is national state policy-making more constrained by capitalist value-disciplines in emerging capitalist economies (ECEs) than it is in advanced capitalist countries? In order to explore this question, this article offers a spatialised form-analysis of the imperative that the capital relation imposes upon the form of the state in ECEs. The approach, grounded in the Marxian critique of political economy, integrates crucial insights from radical economic geography and Post-Keynesian/Minskian economics. I show that despite growing integration into the financial world market, ECEs have retained a subordinate positionality in what I call the relational geographies of money-power, and which are constituted by two overlapping sets of geographies: the geographies of the global monetary system, and the geographies of the global financial system. As a result, the contradiction between capital, money and the state takes a more acute form of realisation in ECEs than in advanced capitalist countries, making the management of monetary and financial affairs more difficult for the capitalist state. This, I argue, constitutes an additional layer of social determination on national policy-making in ECEs. More concretely, this manifests itself as a systematic volatility of exchange rates and a tendency to high real interest rates, enhanced scrutiny of national policy-making by international investors, rapidly shifting financial reputation and high pro-cyclicality of money-capital inflows, the build-up of specific forms of external vulnerability, brutal money-capital flight during financial distress, and heavy dependence on monetary policy in advanced capitalist countries. I conclude by discussing theoretical and political-strategic implications for labour-centred development.

Understanding the Behavior of FDI and Its Role in Capital Formation in Egypt By Ali Massoud, Ph.D. Visiting scholar at Claremont Graduate University, USA Associate professor of Economics, Sohag University, Egypt Abstract: This... more

Cet article étudie la mobilité des capitaux dans quatorze (14) États membres de la CEDEAO sur la période 1980-2011 utilisant l’approche de Feldstein-Horioka. D’une part, l’article s’interroge sur la libre circulation des capitaux dans les... more

Cet article étudie la mobilité des capitaux dans quatorze (14) États membres de la CEDEAO sur la période 1980-2011 utilisant l’approche de Feldstein-Horioka. D’une part, l’article s’interroge sur la libre circulation des capitaux dans les États de la CEDEAO, et d’autre part, il analyse cette mobilité des capitaux selon le niveau de gouvernance des États : niveau élevé de gouvernance (pays GOUV1) et niveau faible de gouvernance (pays GOUV2). Un modèle autorégressif à retards échelonnés est utilisé pour l’estimation des coefficients de rétention de l’épargne. Les résultats montrent que les capitaux sont relativement plus mobiles dans l’espace CEDEAO que dans les pays développés d’Europe. Plus spécifiquement, les capitaux sont plus mobiles au sein des pays non-UEMOA et les pays GOUV1 que dans les ceux de l’UEMOA et pays GOUV2. Les résultats montrent en outre que le monnaie commune n’est pas un élément déterminant de la libre circulation des capitaux au sein de la CEDEAO, alors que la bonne gouvernance est en un facteur fondamental.

This paper is aimed at analyzing the relationship between exchange rate and Foreign Institutional Investment in India. The data comprises with daily data of exchange rate and net foreign institutional investment for the span of 5 years... more

This paper is aimed at analyzing the relationship between exchange rate and Foreign Institutional Investment in India. The data comprises with daily data of exchange rate and net foreign institutional investment for the span of 5 years i.e. April 2009 to march 2014. While using Unit Root it was found that FII's is stationary at level I(0), whereas exchange rate in terms of Us-Dollar is non-stationary at level and to make it stationary it is differenced at order one I(1). Further analysis of causal relationship through Granger Causality depicts that there exists bidirectional relationship between exchange rate and Foreign Institutional Investment in India.

The analytical framework known as the balance-of-payments constrained growth model introduced by Anthony P. Thirlwall more than two decades ago, and further developed by him and N. Hussain, was a major contribution to understanding the... more

The analytical framework known as the balance-of-payments constrained growth model introduced by Anthony P. Thirlwall more than two decades ago, and further developed by him and N. Hussain, was a major contribution to understanding the relevance of a foreign exchange constraint on the long-run growth performance of open economies. In its simplest expression this model is known as Thirlwall's law. Recent contributions have revised this analytical model in order to ensure that the pattern of foreign debt accumulation, implicit in the economy's balance-of-payments constrained growth path, is sustainable.Up to now most theoretical presentations of Thirlwall's law do not incorporate interest payments explicitly and, moreover, the empirical studies carried out within this tradition do not take them into account. This omission may be a major shortcoming in the analysis of the long-term growth path of economies—like many developing ones—whose net interest payments abroad are a large debit item in the current account of their balance of payments. In the present paper we introduce an extension of the balance-of-payments constrained growth model that explicitly captures the influence on foreign interest payments of the economy's long-run rate of growth—while at the same time guaranteeing that foreign indebtedness is not on an explosive track—and test its empirical adequacy by applying it to examine the Mexican case.

During the past five years or so, most East Asian economies including the Philippines experienced a rising level of foreign exchange reserves and rapidly appreciating currencies both in nominal and real terms. One cause has been the... more

During the past five years or so, most East Asian economies including the Philippines experienced a rising level of foreign exchange reserves and rapidly appreciating currencies both in nominal and real terms. One cause has been the resurgence of capital flows, which makes the issue of how to manage them relevant. However, the experience with regard to capital flows among East Asian economies is mixed and the level of capital flows to the region is proportionally less than that prior to the 1997 crisis. Another reason is the rise in current account surpluses. The Philippines has experienced both a return of capital inflows and a more favorable current account balance, with the latter largely due to remittances from overseas workers. However, like many other regional currencies, the appreciation of the peso is not commensurate to movements of the BOP accounts. Currencies in the region are reacting primarily to the general weakness of the US dollar, and global uncertainties have contr...

This paper considers the effects of a more or less trade and capital openness on the instability of the growth rate. Indicators of outward looking policies are estimated by eliminating the impact of structural factors through a panel... more

This paper considers the effects of a more or less trade and capital openness on the instability of the growth rate. Indicators of outward looking policies are estimated by eliminating the impact of structural factors through a panel standardization equation. Then indicators of growth instability are estimated. Open trade policies are assumed to be stabilizing because they improve the working

The causes and consequences of international capital mobility have been widely discussed in the fields of International Relations (IR) and International Political Economy (IPE), particularly in the aftermath of recurring financial crises... more

The causes and consequences of international capital mobility have been widely discussed in the fields of International Relations (IR) and International Political Economy (IPE), particularly in the aftermath of recurring financial crises over the past twenty-five years or so. International capital mobility refers to the ability of private capital to move across territorial borders in search for higher yields. A key question has been the extent to which international capital mobility-greatly enhanced by technological advances in financial trading systems, widespread financial deregulation and liberalisation, the global integration of financial markets, and financial innovation since the 1980s-has caused an erosion of state power. The issue is particularly pressing for developing and emerging economies, which despite growing participation and integration into the financial world market, have remained extremely vulnerable to highly volatile cross-border flows of financial capital, as recent crises in developing countries across the income spectrum have shown. Much of the IR and IPE thinking on the matter has been profoundly shaped by three foundational arguments, which I review in this short article. I am particularly concerned here with the extent to which those arguments allow making sense of the policies that were recently implemented in a number of developing and emerging economies in order to manage cross-border finance. Indeed, in the context of the recent global financial crisis, countries across the developing world deployed measures that aimed at taming the destabilizing effects of sharp swings of unregulated financial capital. For instance, developing economies such as Brazil, South Korea, Indonesia, Costa Rica, Uruguay, the Philippines, Peru, Taiwan, Colombia, and Thailand put in place a variety of capital controls (Grabel 2015).
https://www.e-ir.info/2019/03/09/class-matters-global-capital-mobility-and-state-power-in-emerging-economies/

By means of a theoretical post-Keynesian stock-flow consistent (SFC) model, we analyse the implications of the surges of capital inflows for the macroeconomic dynamics of financially opened peripheral economies. First, consistently with... more

By means of a theoretical post-Keynesian stock-flow consistent (SFC) model, we analyse the implications of the surges of capital inflows for the macroeconomic dynamics of financially opened peripheral economies. First, consistently with empirical evidence, our numerical simulation suggests that, during the surge, macroeconomic outcomes are mostly positive, with an acceleration of growth, but are promptly reversed afterwards. In the medium run, GDP level permanently decreases, current account quantitatively and qualitatively deteriorates, international reserves drops and public debt increases. Second, we highlight that exchange rate appreciation during the surge is not a necessary condition for the negative medium run outcomes to emerge. Our interpretation of the results is that financial openness may be detrimental for peripheral economies, reinforcing their structural fragilities.

Trying to understand the economic importance of the drug upon Colombia Income Inequality, the magnitude of wealth´s repatriation (W) is estimated since mid seventies, considering the repatriable income (UR) and its absorption through... more

Trying to understand the economic importance of the drug upon Colombia Income Inequality, the magnitude of wealth´s repatriation (W) is estimated since mid seventies, considering the repatriable income (UR) and its absorption through Undercover Capital Flows (FCE), by smuggling, and foreign investment originated in tax havens. The UR are calculated using available data about production, prices and seizures, besides many documented assumptions. Whereas the FCE compares official figures between Colombia and the rest of the world over / under-invoicing of trade; meanwhile estimations based on fundamentals are used for other FCE. In this way, W explains the rise in income inequality, controlled by economic growth, in line with another manifestations of inequality exacerbation attributed to drug trafficking. A subject of main regional significance, considering that land inequality is associated with economic growth and property seizures drug traffic. There is a pending challenge for public policy, according to its poor design, and ambiguous results, in search of fight the criminal wealth, and promote legal economy

Determinants of Portfolio Flows to Egypt: Push vs. Pull Factors By Ali Massoud, Ph.D. Associate Professor of Economics at Sohag University Abstract: This paper examines to what extent pull and push factors determine the magnitude of... more