This volume examines a plethora of issues related to international capital flows, including the inevitable crisis that arises from the absorption of large volumes of capital inflow; the vast difference between foreign portfolio investment and foreign direct investment (FDI) from the point-of-view of the recipient country; the impact of different regulatory mechanisms; and various policy options for developing countries in the face of fluid international capital movements.
1 Introduction by Ashwini Deshpande 1
2 How Financial Liberalization Led in the 1990s to Three Different Cycles of 'Manias, Panics and Crashes' in Middle-Income Countries by Jose Gabriel Palma 11
3 Timing the Mexican 1994-95 Financial Crisis using a Markov Switching Approach by Moritz Cruz and Edmund Amann 39
4 Exchange Rates, Growth and Inflation: What If the Income Elasticities of Trade Flows Respond to Relative Prices? by Nelson H. Barbosa-Filho 53
5 Alternative Measures of Currency and Asset Substitution: The Case of Turkey by A. Ozden Birkan 71
6 Competitive Diversification in Resource Abundant Countries: Argentina after the Collapse of the Convertibility Regime by Leandro Serino 89
7 Foreign Portfolio Investment, Stock Market and Economic Development: A Case Study in India by Parthapratim Pal 121
8 Transnational Corporations and the Internationalization of Research and Development Activities in Developing Countries: The Relative Importance of Affiliates in Asia and Latin America by Celio Hiratuka 147
9 External Debt Nationalization as a Major Tendency on Brazilian External Debt in the Twentieth Century: The Shifting Character of the State during Debt Crisis by Luiz M. Niemeyer 165
10 Prudential Regulation and Safety Net: Recent Transformations in Brazil by Ana Rosa Ribeiro de Mendonca 187
11 Re-crafting Bilateral Investment Treaties in a Development Framework: A Comparative Regional Perspective by Biplove Choudhary and Parashar Kulkarni