An alternative look at balance-of-payments puzzle : structural decomposition of accounts of 16 emerging markets
Author(s)
Advisor
Yeldan, ErinçDate
2006Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
278
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Abstract
The empricial evidence on pro-growth effect of capital account liberalization is
inconclusive. I argue that, after liberalization, the link between structural finance
needs of developing countries and debt flows lost its importance. Instead, the flight of
resident capital and unproductive reserve accumulation have created new financing
needs, limiting the augmentation of saving pools of developing countries and hence
growth. I build four new components from balance-of-payments account that make it
possible to track the new financing patterns. I investigate relationship between these
components for 15 emerging market countries. I also make a case study for Turkey
using vector autoregression technique to establish a causality link between dynamics
of the new structural aggregates.