| Abstract: |
This paper analyzes the determinants of the volatility of different types of
capital inflows to emerging countries. After calculating a variable that
proxies capital flows volatility, we study its possible causality relations
with a set of explanatory variables by type of flow through a panel data
model. We show that in recent years the significance of global factors, beyond
the control of emerging economies, has increased at the expense of that of
country specific factors. In addition, various factors exhibit a non-robust
effect on the volatility of the three different categories of capital flows,
which poses additional challenges for policy-makers. |