International Conference on Eurasian Economies
4-5 November 2010 – Istanbul, TURKEY
Paper detail
Paper ID : 219
Status : Paper published
Language : English
Topic : Finance and Financial Crises
Presenter: Prof. Dr. Şaziye Gazioğlu
Session : 2A Global Crisis
Foreign Capital in Russia and Hong Kong: Postmortem of International Financial Crisis
Foreign Capital in Russia and Hong Kong: Postmortem of International Financial Crisis
- Prof. Dr. Şaziye Gazioğlu (Middle Eastern Technical University, Türkiye)
- Ph.D. candidate Ülkem Başdaş (Middle East Technical University, Türkiye)
Abstract
This paper studies the relation among real stock returns, real capital flows and real exchange rate starting from a theoretical model. The model predicts that the capital inflows affect the real exchange rate and stock returns. Besides, there is an asymmetry between the effect of capital inflows and outflows on real exchange rate causing a “Debt Trap”. In this paper, we compare the evidence from Russia and Hong Kong. The empirical findings confirm the theoretical model for all three countries.
JEL codes: F31, F32, F36
Gazioğlu, Şaziye, Başdaş, Ülkem (2010). "Foreign Capital in Russia and Hong Kong: Postmortem of International Financial Crisis" in Proceedings of International Conference of Eurasian Economies 2010, pp.92-97, Istanbul, TURKEY.
DOI: https://doi.org/10.36880/C01.00219
