Bank of Korea paper addresses growth implications of rising capital inflows

A Bank of Korea paper published in August finds evidence that the increase in capital inflows towards Korea is having a negative impact on the economy.

Young-Jun Choi and Joon Choi, the paper's authors, use a logit model to assess the effects of a surge in capital inflows on direct investment, portfolio investment and bank borrowings, but also global, contagious and domestic institutional factors. The authors say the quantitative easing policies of the US and other major advanced economies have