TY  - BOOK
AU  - Kirabaeva,Koralai
AU  - Razin,Assaf
ED  - National Bureau of Economic Research.
TI  - Composition of Capital Flows: A Survey 
T2  - NBER working paper series
PY  - 2010///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - October 2010; Hardcopy version available to institutional subscribers
N2  - We survey several mechanisms that explain the composition of international capital flows: foreign direct investment, foreign portfolio investment and debt flows (bank loans and bonds). We focus on information frictions such as adverse selection and moral hazard, and exposure to liquidity shocks, and discuss the following implications for composition of capital flows: 1. home court information advantage; 2. panic-based capital-flow reversals; 3. information-liquidity trade-off in the presence of source and host country liquidity shocks; 4. moral hazard in international debt contracts; and 5. risk sharing role of domestic bonds in the presence of home bias in goods and equity
UR  - https://www.nber.org/papers/w16492
UR  - http://dx.doi.org/10.3386/w16492
ER  -