Title: Foreign capital inflows in developed and developing economies: facts, feature and analysis

Authors: Monica Singhania; Neha Saini

Addresses: Faculty of Management Studies, University of Delhi, India ' Faculty of Management Studies, University of Delhi, India

Abstract: This paper seeks to provide a rationale for changing trends of foreign capital inflows in select developed and developing countries using macroeconomic and firm's strategic considerations. The study has incorporated graphical and quantitative analysis using multiple structural breakpoints to identify the time and reason for such divisions. The study covers time series data of 25 years (1991-2015) for 20 countries using qualitative and quantitative analysis. Qualitative analysis involves graphical investigation of evidence, while quantitative analysis encompasses the various categories of tests involving global maximises for breakpoints, sequentially determined breakpoints and hybrid breakpoint tests to ascertain multiple structural breakpoints. The conclusion is made on the basis of push factors grounded to the Latin American financial crisis, Asian financial crisis and global financial crisis on foreign capital inflows based on sample countries. The study outlines the theoretical basis for fluctuating trends of capital flows on the basis of push determinants; and also incorporates multiple structural breakpoints using statistical packages. This research is the first of its kind to the best of our knowledge.

Keywords: foreign capital inflows; FDI; FII; trends; macroeconomic variables; crisis period.

DOI: 10.1504/IJICBM.2019.104793

International Journal of Indian Culture and Business Management, 2019 Vol.19 No.4, pp.465 - 490

Received: 26 Dec 2018
Accepted: 12 Mar 2019
Published online: 31 Jan 2020 *

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