Economic growth in Latin America and the rise of material welfare has lagged behind that of more dynamic areas of the world economy. In a region prone to policy experiments, the policies of the Washington Consensus applied since the 1990s failed to bring sustained growth to most of Latin...

This paper develops an ordinal index to measure the openness of FDI policy regimes for individual countries. There has been a generalised increase in the index between 1990 and 2002. The most important determinants of variations in FDI flows across countries and over time are country size, the...

This paper assesses the extent to which foreign direct investment (FDI) in developing countries crowds in or crowds out domestic investment. The core of the paper is the development of a theoretical model for investment that includes a FDI variable and its estimation and testing with panel data...

This paper estimates a model of fiscal response to analyse the impact of aid on government consumption and investment, tax revenue and public borrowing in Nicaragua in 1966-2004. This country is an interesting case study since aid flows-i.e. grants and aid loans-averaged more than 8 per cent of...

This paper applies the overreaction hypothesis of De Bont and Thaler [De Bont, W., Thaler, R., 1985. Does stock market overreact? Journal of Finance 40(3), 793–805], developed for stock price behavior, to capital flows to emerging markets. We find that a surge in capital flows, or what we call...

Capital inflows to emerging economies have a significant exogenous component, they are very large when scaled to the size of the domestic financial sectors of recipients and they have large real macroeconomic effects. They also sow the seeds for the ensuing sudden stops, or capital flow...