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Capital mobility, balance of payments constraints, and economic growth: an empirical dynamic analysis

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  • Sérgio Fornazier Meirelles Filho

    (FACE-UFG, Ciências Econômicas)

  • Frederico Gonzaga Jayme Jr

    (Cedeplar/UFG)

Abstract

This paper analyses empirically the relationship between economic growth and the openness of the financial account of the balance of payments. It takes into consideration the balance of payments’ constrained growth, as well as the difficulties in the empirical literature in measuring capital mobility. Starting from traditional capital mobility indexes we estimate a panel across 80 countries, both developed and developing between 1979-2003. Results suggest that more capital mobility in developing countries affects growth negatively, whereas it possibly stimulates growth in developed countries.

Suggested Citation

  • Sérgio Fornazier Meirelles Filho & Frederico Gonzaga Jayme Jr, 2010. "Capital mobility, balance of payments constraints, and economic growth: an empirical dynamic analysis," Working papers - Textos para Discussao do Curso de Ciencias Economicas da UFG 016, Curso de Ciencias Economicas da Universidade Federal de Goias - FACE.
    • Handle: RePEc:ufb:wpaper:016
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    1. Mirdala, Rajmund & Svrčeková, Aneta & Semančíková, Jozefína, 2015. "On the Relationship between Financial Integration, Financial Liberalization and Macroeconomic Volatility," MPRA Paper 66143, University Library of Munich, Germany.

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    More about this item

    Keywords

    Economic Growth; Capital Mobility; Dynamic Panel.;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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