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dc.titleIs FDI a Safer Form of Financing?
dc.contributor.authorFernández-Arias, Eduardo
dc.contributor.authorHausmann, Ricardo
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America
dc.date.available2011-02-04T00:00:00
dc.date.issue2000-03-26T00:00:00
dc.description.abstractIt has been common to attribute financial crises to short-term capital inflows, while foreign direct investment (FDI) is seen as a safer form of finance. The relationship between crises and the composition of capital flows is particularly relevant at present because the flow of capital to Latin America is becoming increasingly dominated by FDI. This paper asks whether the composition of capital inflows and of the stock of foreign liabilities is relevant for financial crises, be it their frequency, depth, or length. It explores the possible role of FDI as a benign form of external liability relative to other classes of liabilities, reviewing both analytical and empirical arguments.
dc.format.extent27
dc.identifier.doihttp://dx.doi.org/10.18235/0010776
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Is-FDI-a-Safer-Form-of-Financing.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFinancial Management
dc.subjectInvestment
dc.subjectCapital Flow
dc.subject.keywordsforeign direct investment;WP-416;FDI;capital movements
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
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