The Complexity of Global Capital Flows: Evidence from G20 Countries
Table 6
Results of system GMM in G20 countries.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Variables
FDI inwards
FDI inwards
FDI inwards
FDI outwards
FDI outwards
FDI outwards
FPI inwards
FPI inwards
FPI inwards
A lagged dependent variable
0.426
0.383
0.392
0.496
0.448
0.386
0.389
0.326
0.390
(0.001)
(0.001)
(0.002)
(0.001)
(0.001)
(0.001)
(0.025)
(0.001)
(0.022)
Stock traded/GDP
0.081
0.204
0.399
0.600
0.251
0.142
(0.064)
(0.075)
(0.072)
(0.076)
(0.027)
(0.026)
Stock traded classification
−0.098
−0.359
−0.420
(0.072)
(0.127)
(0.003)
Domestic credit
0.073
−0.096
0.035
(0.804)
(0.647)
(0.874)
Domestic credit classification
−0.355
−0.245
−0.289
(0.258)
(0.241)
(0.040)
World GDP growth
0.128
0.119
0.146
0.155
−0.042
0.059
(0.019)
(0.042)
(0.067)
(0.060)
(0.227)
(0.051)
Crude oil
0.023
0.024
−0.014
(0.022)
(0.123)
(0.411)
Real interest rate
0.010
0.021
0.015
−0.005
−0.001
0.005
0.010
(0.052)
(0.036)
(0.085)
(0.703)
(0.958)
(0.619)
(0.205)
Reserve accumulation growth
0.535
−0.216
0.478
(0.353)
(0.693)
(0.346)
Crisis 2007–2009 dummy
−0.508
−0.209
−0.376
−0.444
−0.412
−0.490
0.035
−0.172
0.008
(0.062)
(0.066)
(0.060)
(0.231)
(0.191)
(0.104)
(0.874)
(0.338)
(0.963)
Capital restriction
0.866
−1.305
−0.422
(0.182)
(0.028)
(0.321)
Observations
282
282
278
278
278
274
271
271
267
Number of countries
19
19
19
19
19
19
19
19
19
Sargan ( value)
0.318
0.522
0.721
0.335
0.553
0.344
0.514
0.495
0.333
Arellano-Bond (2) ( value)
0.503
0.325
0.381
0.666
0.625
0.368
0.318
0.332
0.494
Note. The system GMM regressions are used to examine all hypotheses. The dependent variables are FDI inwards/GDP, FDI outwards/GDP, and FPI inwards/GDP. The pull factors are measured by stock traded/GDP and domestic credit by banks/GDP. The push factor is measured by world GDP growth and the price of WTI crude oil. The models control for a lagged dependent variable, the stock traded/GDP, and domestic credit provided by banks as endogenous variables. The rest of independent variables are exogenous. The null hypothesis of Sargan test is that the instruments are valid instruments. The null hypothesis of Arellano-Bond test is no autocorrelation in the second order. Robust value is provided within parentheses: ,, and .
