Deciphering the Global Private Financial Flows

Abstract

Cross border and inter country financial recourse is like a civilization hold. It is fundamentally important phenomenon to study. Purpose of this study is to investigate inter country global private financial flows in context of current financial regimes. Design of the study is quantitative based on a secondary data taken from website of World Development Indicators (WDI) 2020. A literature review of relevant studies extracted from renowned research databases is also integral part of the overall design of the study. For the purpose of analysis and investigation the study uses Grey Relational Analysis (GRA). GRA is a mathematical technique capable of handling a multitude of alternatives with plenty of criteria simultaneously. It is a ranking technique that generates the reference series, normalizes the data and compares the weighted average grey coefficients with reference series. GRA is a popular methodology espoused in grey systems theory. It is the study of eighty-three countries on the basis of five different criteria. The countries have been ranked according to Grey relational grades by using rank function of excel and are divided into seven different categories on the basis of intensity of financial flows. The categories have been made on the basis of ordinal scale e.g. exceptionally high level of private global financial flows, excellent, very good, good, fair, poor and very poor. Results show that China, Niger, Brazil, Mozambique, Mongolia, St. Vincent and the Grenadines, Cambodia, Grenada, Thailand, Indonesia, Argentina and Maldives have exceptionally high private financial flows, whereas, countries namely Lesotho, Kazakhstan, Uzbekistan, Botswana, Guatemala, Solomon Islands, Afghanistan, Bolivia, Bhutan, Angola and Russian Federation have poor financial flows. Majorly, Arabian Countries (AC), Organization for Economic Co-operation and Development (OECD) and Union of South American Nations (UNASUR) countries fall under exceptionally high ensign, whereas, member countries of Economic Cooperation Organization (ECO) and Southern Africa Development Community (SADC) countries fall under very poor ensign. This study is useful for political governments, international agencies, researchers and academia (students and teachers of international finance). It also provides new information and deeper insights by way of assigning grey relational grades to countries and classifies them into seven groups. It also extends discussion to enlighten upon bloc level position.