This paper studies the determinants of private capital flows to developing countries during the last two episodes of large inflows, the late 1970searly 1980s and the 1990s. The paper also tests for contagion effects in capital flows among recipient countries, and tries to identify specific...

Since 1989, private capital flows to a select group of developing countries have increased sharply, but developments in 1994 have caused concern about the sustainability of those flows. Several highly indebted developing countries that are implementing reform are concerned that a generalized...