Globalization of International Financial Markets

Part 1 Introduction: issues on globalisation; statement of research problem; purposes of the study; research questions. Part 2 Review of literature: a brief review of the conceptual approaches; modern theories of determinants of international capital flows; flow theory; portfolio theory; empirical findings of flow theory; empirical findings of portfolio theory; empirical findings of monetary approach; key findings; unsolved issues; modelling strategies. Part 3 Research methodology: theoretical framework; measurement of globalisation; causes of inflows and outflows of international capital; data selection; data and sample; definitions; hypotheses concerning globalisation; hypotheses for capital inflows and outflows; model specifications; model specification for gross flows; model specification for capital inflows and outflows. Part 4 Empirical findings: causes of globalisation of international financial markets; gross flows of total capital; gross flows by financial item; major findings con-cerning globalisation of international financial markets; consequences of globalisation for capital flows; capital inflow and outflow by financial item; four types of short-term capital flows. Part 5 Overview. Appendices: variable creation and identification; statistical tests; descriptive statistics for 121 countries; models with country and time dummy coefficients.