CAPITAL FLOWS TO DEVELOPING COUNTRIES AND ECONOMIC RESULTS

Vedat CENGİZ; Rıdvan KARACAN

doi:https://doi.org/10.18092/ijeas.81461

Article Details

CAPITAL FLOWS TO DEVELOPING COUNTRIES AND ECONOMIC RESULTS

Authors:

Vedat CENGİZ | Rıdvan KARACAN

Publisher:

Kenan ÇELİK

Main Topics:

Sociology and anthropology

Journal:

International Journal of Economics and Administrative Studies 2015 Issue 15, pp.327-344

Document Type:

Article

Publication Date:

6/2015

Document Language:

English

Document ID (Org No.):

2000642142

Frequency:

Quarterly

eISSN:

1307-9859

pISSN:

1307-9832

DOI:

https://doi.org/10.18092/ijeas.81461

Abstract:

 

The increase -after the crisis- in capital movements which drastically decreased due to 2008 global economic crisis has put the clock back on this issue. Countries that are underdeveloped in terms of domestic savings, technology and foreign exchange need a foreign capital in order to finance the development and thus, to bridge the gaps with the developed countries. In this study, the macroeconomic consequences of capital movements towards the developed countries have been examined. This study particularly focusing directly on foreign capital investments and portfolio investments has discussed the development and determinants of capital movements and the positive and negative effects on the economy. Developing countries should increase productivity by the reason of providing technology and knowledge transfer and should place a great emphasis on foreign direct capital investments that promote economic growth and have a minimum possibility of sudden return. On the other hand, portfolio investments, which are the speculative and variable investment components, make up risky and problematic way of solving undercapitalization problem of developing countries.

 


2008 küresel ekonomik kriziyle birlikte ciddi ölçülerde azalan sermaye hareketlerinin kriz sonrasında yeniden artış göstermesi bu konudaki tartışmaları yeniden gündeme getirmiştir. İç tasarrufları, teknolojisi ve dövizi yetersiz gelişmekte olan ülkeler kalkınmalarını finanse etmek ve böylece gelişmiş ülkelerle aralarındaki farkı kapatabilmek için yabancı sermayeye gereksinim duymaktadır. Bu çalışmada gelişmekte olan ülkelere yönelik sermaye hareketlerinin makroekonomik sonuçları incelenmektedir. Özellikle doğrudan yabancı sermaye yatırımları ve portföy yatırımları üzerinde odaklanan çalışmada sermaye hareketlerinin gelişimi ve belirleyicileri ve ekonomi üzerindeki olumlu ve olumsuz etkileri tartışılmaktadır. Gelişmekte olan ülkeler, sağladığı teknoloji ve bilgi transferi nedeniyle verimliliği arttırıp, ekonomik büyümeyi destekleyen ve ani geri dönüş olasılığı düşük olan doğrudan yabancı sermaye yatırımlarına daha çok önem vermelidir. Buna karşın spekülatif ve değişken bir sermaye bileşeni olan portföy yatırımları, gelişmekte olan ülkelerin sermaye yetersizliği problemini çözmenin riskli ve sorunlu yolunu oluşturmaktadır.

Anahtar Kelimeler: Uluslararası Sermaye Hareketleri, Doğrudan Yabancı Sermaye Yatırımları, Yabancı Portföy Yatırımları

JEL Sınıflandırması: F20, F32

 

CAPITAL FLOWS TO DEVELOPING COUNTRIES AND ECONOMIC RESULTS

Abstract

The increase -after the crisis- in capital movements which drastically decreased due to 2008 global economic crisis has put the clock back on this issue. Countries that are underdeveloped in terms of domestic savings, technology and foreign exchange need a foreign capital in order to finance the development and thus, to bridge the gaps with the developed countries. In this study, the macroeconomic consequences of capital movements towards the developed countries have been examined. This study particularly focusing directly on foreign capital investments and portfolio investments has discussed the development and determinants of capital movements and the positive and negative effects on the economy. Developing countries  should increase productivity by the reason of providing technology and knowledge transfer and should place a great emphasis on foreign direct capital investments that promote economic growth and have a minimum possibility of sudden return. On the other hand, portfolio investments, which are the speculative and variable investment  components, make up  risky and problematic way of solving undercapitalization problem of developing countries.

Keywords: International Capital Movements, Direct Foreign Direct Investments, Foreign Portfolio Investments

JEL Classification: F20, F32

.

Article Details

CAPITAL FLOWS TO DEVELOPING COUNTRIES AND ECONOMIC RESULTS

Authors: Vedat CENGİZ | Rıdvan KARACAN

Publisher: Kenan ÇELİK

Main Topics: Sociology and anthropology

Journal: International Journal of Economics and Administrative Studies 2015 Issue 15, pp.327-344

Document Type: Article

Publication Date: 6/2015

Document Language: English

Document ID (Org No.): 2000642142

Frequency: Quarterly

eISSN: 1307-9859

pISSN: 1307-9832

DOI: https://doi.org/10.18092/ijeas.81461

Issues

Authors:

Vedat CENGİZ | Rıdvan KARACAN

Publisher:

Kenan ÇELİK

Main Topics:

Sociology and anthropology

Journal:

International Journal of Economics and Administrative Studies 2015 Issue 15, pp.327-344

Document Type:

Article

Publication Date:

6/2015

Document Language:

English

Document ID (Org No.):

2000642142

Frequency:

Quarterly

eISSN:

1307-9859

pISSN:

1307-9832

DOI:

https://doi.org/10.18092/ijeas.81461