A widespread view holds that countries that finance themselves through foreign direct investment (FDI) and portfolio equity, rather than bonds and loans, are less prone to crises. But what determines countries'' external capital structures? In a cross section of emerging markets and developing...

What determines the composition of external liabilities, both across countries and over time? More specifically, which countries account for the massive increase in equity-like liabilities (foreign direct investment and portfolio equity), especially since the mid-1990s? The empirical analysis...

There is a debate on whether some forms of financial flows offer better crisis protection than others. Using a large panel of advanced, emerging, and developing countries during 1970-2003, this paper analyzes the behavior of various types of flows: foreign direct investment (FDI), portfolio...

Intro -- Contents -- I. INTRODUCTION -- II. BEHAVIOR OF DIFFERENT TYPES OF FINANCIAL FLOWS -- III. BEHAVIOR DURING SUDDEN STOPS IN FINANCIAL FLOWS -- IV. CONCLUSIONS AND POSSIBLE EXTENSIONS -- REFERENCES.