The probability of sudden stop of capital flows - the case of Albania

Shijaku, Gerti (2013): The probability of sudden stop of capital flows - the case of Albania.

Abstract

The main goal of this paper is to develop a better understanding of international capital flows based on the episode of sudden stop concept. First, we compute a sudden stop indicator (or our binary variable) in order to analyze movements in foreign capital flows. Second, the probability of these episodes is estimated as a function of some economic fundamentals by running a probit estimation with quarterly data over the period 2004–2012.

• Item Type: MPRA Paper
• Language: English
• Keywords: Sudden stop, Capital Flows, probit model
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling; C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C82 - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data ; Data Access; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements; F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements

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