Capital Flows to BRICS Countries during 2000-2010

Abstract

The objective of this paper is to analyze the dynamics of financial flows towards the BRICS in the period 2000-2010. Particularly, the paper examines the impacts of the capital controls adopted by each economy on the movements of specific types of capital registered in their financial accounts. The idea is to show that, regarding financial dynamics, the economies of the BRICS present peculiar characteristics that should be taken into account in the formulation of strategies for global financial regulation. To accomplish this goal, Minsky’s theoretical framework is used as background; the cycles of international liquidity are discussed as well as their impact on the behavior of capital flows toward emerging economies, specially the BRICS. The empirical analysis allows us to highlight the importance of an adequate capital management to attract long-term financial flows that are able to contribute to the productive growth of these economies.

The Impact of BASEL Accords on the Management of Vietnamese Commercial Banks

“…Korinek and Sandri [23] analyzed both the macro-prudential regulation and capital control being ideally adjusted to mitigate the risks to financial stability in emerging economies based on data from East Asian countries. Munhoz et al [24] applied Generalized Autoregressive Conditional Heteroscedasticity models (GARCH) to study the volatility of banks across Brazil, Russia, India, and China (BRIC) countries with the objective of discovering how prudential capital regulations contributed to financial stability. Their empirical analysis showed that capital www.videleaf.com flow instability is less affected in countries that adopted capital control regulation of Basel Accords.…”

The Impact of BASEL Accords on the Management of Vietnamese Commercial Banks

“…Korinek and Sandri (2016) analyzed both the macro-prudential regulation and capital control being ideally adjusted to mitigate the risks to financial stability in emerging economies based on data from East Asian countries. Munhoz et al (2017) applied Generalized Autoregressive Conditional Heteroscedasticity models (GARCH) to study the volatility of banks across Brazil, Russia, India, and China (BRIC) countries with the objective of discovering how prudential capital regulations contributed to financial stability. Their empirical analysis showed that capital flow instability is less affected in countries that adopted capital control regulation of Basel Accords.…”