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International Capital Flows When Safe Assets Scarcity Matters

Author

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  • Ly Dai Hung

    (Vietnam Institute of Economics, Hanoi, Vietnam)

  • Hoan Nguyen Thi Thuy

Abstract

In an open multi-country economy, the safe assets supply shapes the pattern of international capital flows. A higher productivity growth rate raises the net capital inflows for economies with abundant safe assets, but reduces the net capital inflows for economies with scarce safe assets. The cross-section analysis on a sample of 170 economies over 1980-2013 confirms the theory. The evidence is robust for instrument-variable (IV) analysis method.

Suggested Citation

  • Ly Dai Hung & Hoan Nguyen Thi Thuy, 2020. "International Capital Flows When Safe Assets Scarcity Matters," Working Papers hal-03112750, HAL.
    • Handle: RePEc:hal:wpaper:hal-03112750
    Note: View the original document on HAL open archive server: https://hal.science/hal-03112750v2
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    References listed on IDEAS

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    More about this item

    Keywords

    Public Debts; Safe Assets; International Capital Flows;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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