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Alfaro, L., Chanda, A., Kalemli-Ozcan, S. and Sayek, S. (2004) FDI and Economic Growth: The Role of Local Financial Markets. Journal of International Economics, 64, 89-112.
https://doi.org/10.1016/S0022-1996(03)00081-3

has been cited by the following article:

• TITLE: Capital Flows, Trade and the Role of the Financial System

  AUTHORS: Emmanuel Amissah

  KEYWORDS: Financial Development, Trade Liberalisation, Capital Flows

  JOURNAL NAME: Modern Economy, Vol.9 No.9, September 28, 2018

  ABSTRACT: In this study, we examine the crucial role played by financial development in the relationship between trade and capital flows. We examine this relationship for 130 countries from 1980 to 2005 for different types of capital flows. We show that the relationship depends on the type of capital flows and the level of financial development. We observe a positive interaction between trade liberalisation and financial development for portfolio flows. In the case of FDI (Foreign Direct Investment), we observe an insignificant relationship. The FDI flows bypass the financial system as it flows into such countries because of other factors as side the level of the financial development.