The authors study what drives private capital flows to developing countries, as well as the apparent response of official lending for the years 1978-97. Econometric results reveal that non-foreign direct investment portfolio flows to a country tended to rise in response to: 1) An increase in the...

Private portfolio flows to a country tend to rise in response to an increase in the current account deficit, a rise in foreign direct investment flows, higher per capita income, and growth performance. The most important determinant of official lending to a developing country seems to be the...

This note summarizes recent projections on the longer-term effects of the East Asia's financial crisis, and the significant effect already felt in developing countries. Five main points are examined, as follows: 1) though trade will drive the recovery, adjustment will be deep and protracted, in...