Fiscal policy and capital flows: evidence for some countries in Latin America
Capital flows represent opportunities to finance the growth and development of countries, but they also entail risks, including macroeconomic and financial. Policy responses to mitigate its effects play an important role especially in emerging markets. This paper evaluates the fiscal policy stance i...
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| Format: | Online |
| Language: | spa |
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Universidad Pedagógica y Tecnológica de Colombia
2016
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| Online Access: | https://revistas.uptc.edu.co/index.php/cenes/article/view/5230 |
| _version_ | 1801705954725593088 |
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| author | Lozano Espitia, Luis Ignacio Melo-Becerra, Ligia Alba Ramos, Jorge Enrique |
| author_facet | Lozano Espitia, Luis Ignacio Melo-Becerra, Ligia Alba Ramos, Jorge Enrique |
| author_sort | Lozano Espitia, Luis Ignacio |
| collection | OJS |
| description | Capital flows represent opportunities to finance the growth and development of countries, but they also entail risks, including macroeconomic and financial. Policy responses to mitigate its effects play an important role especially in emerging markets. This paper evaluates the fiscal policy stance in front to shocks on capital flows recorded during the last two decades in six emerging economies of Latin America: Argentina, Brazil, Chile, Colombia, Mexico and Peru.Based on the characterization of the different episodes of sudden inflows and outflows of capital and on the results of a panel data model with instrumental variables, we found that governments did not responded with exceptional fiscal measures. By contrast, the procyclicality in the fiscal stance seems to be associated to the effect of capital flows on economic activity. |
| format | Online |
| id | oai:oai.revistas.uptc.edu.co:article-5230 |
| institution | Revista Apuntes del Cenes |
| language | spa |
| publishDate | 2016 |
| publisher | Universidad Pedagógica y Tecnológica de Colombia |
| record_format | ojs |
| spelling | oai:oai.revistas.uptc.edu.co:article-52302022-11-16T16:25:21Z Fiscal policy and capital flows: evidence for some countries in Latin America La política fiscal frente a los flujos de capital: evidencia para algunos países de América Latina Lozano Espitia, Luis Ignacio Melo-Becerra, Ligia Alba Ramos, Jorge Enrique capital flows fiscal policy emerging economies flujos de capital política fiscal economías emergentes. Capital flows represent opportunities to finance the growth and development of countries, but they also entail risks, including macroeconomic and financial. Policy responses to mitigate its effects play an important role especially in emerging markets. This paper evaluates the fiscal policy stance in front to shocks on capital flows recorded during the last two decades in six emerging economies of Latin America: Argentina, Brazil, Chile, Colombia, Mexico and Peru.Based on the characterization of the different episodes of sudden inflows and outflows of capital and on the results of a panel data model with instrumental variables, we found that governments did not responded with exceptional fiscal measures. By contrast, the procyclicality in the fiscal stance seems to be associated to the effect of capital flows on economic activity. Los flujos de capital representan oportunidades para financiar el crecimiento y el desarrollo de los países, pero también conllevan riesgos, especialmente de tipo macroeconómico y financiero. Las respuestas de política para mitigar sus efectos, juegan un papel importante especialmente en los mercados emergentes. En este trabajo se evalúa la postura de la política fiscal frente a los choques de los flujos de capital registrados durante las dos últimas décadas en seis economías emergentes de América Latina: Argentina, Brasil, Chile, Colombia, México y Perú. Con base en la caracterización de los diferentes episodios de entradas y salidas súbitas de capital y en la estimación de un modelo de datos de panel con variables instrumentales, se encuentra quelos gobiernos no respondieron con medidas fiscales excepcionales. Por el contrario, su postura fiscal de naturaleza procíclica parece estar asociada al efecto que los flujos de capital produjeron sobre la actividad económica. Universidad Pedagógica y Tecnológica de Colombia 2016-07-26 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer reviewed Article application/pdf text/html https://revistas.uptc.edu.co/index.php/cenes/article/view/5230 10.19053/22565779.5230 Apuntes del Cenes; Vol. 35 No. 62 (2016); 53-85 Apuntes del Cenes; Vol. 35 Núm. 62 (2016); 53-85 2256-5779 0120-3053 spa https://revistas.uptc.edu.co/index.php/cenes/article/view/5230/4303 https://revistas.uptc.edu.co/index.php/cenes/article/view/5230/6249 Copyright (c) 2016 Luis Ignacio Lozano Espitia, Ligia Alba Melo-Becerra, Jorge Enrique Ramos http://creativecommons.org/licenses/by-nc-sa/4.0 |
| spellingShingle | capital flows fiscal policy emerging economies flujos de capital política fiscal economías emergentes. Lozano Espitia, Luis Ignacio Melo-Becerra, Ligia Alba Ramos, Jorge Enrique Fiscal policy and capital flows: evidence for some countries in Latin America |
| title | Fiscal policy and capital flows: evidence for some countries in Latin America |
| title_alt | La política fiscal frente a los flujos de capital: evidencia para algunos países de América Latina |
| title_full | Fiscal policy and capital flows: evidence for some countries in Latin America |
| title_fullStr | Fiscal policy and capital flows: evidence for some countries in Latin America |
| title_full_unstemmed | Fiscal policy and capital flows: evidence for some countries in Latin America |
| title_short | Fiscal policy and capital flows: evidence for some countries in Latin America |
| title_sort | fiscal policy and capital flows evidence for some countries in latin america |
| topic | capital flows fiscal policy emerging economies flujos de capital política fiscal economías emergentes. |
| topic_facet | capital flows fiscal policy emerging economies flujos de capital política fiscal economías emergentes. |
| url | https://revistas.uptc.edu.co/index.php/cenes/article/view/5230 |
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