02135cas a2200265 a 4500 AALejournalIMF017051 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475529548 1018-5941 BD-DhAAL BD-DhAAL Abidi, Nordine. Changing Times for Frontier Markets : A Perspective from Portfolio Investment Flows and Financial Integration / Nordine Abidi, Burcu Hacibedel, Mwanza Nkusu. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates to what extent low-income developing countries (LIDCs) characterized as frontier markets (FMs) have begun to be subject to capital flows dynamics typically associated with emerging markets (EMs). Using a sample of developing countries covering the period 2000-14, we show that: (i) average annual portfolio flows to FMs as a share of GDP outstripped those to EMs by about 0.6 percentage points of GDP; (ii) during years of heightened stress in global financial markets, portfolio flows to FMs dried up like those to EMs; and that (iii) FMs have become more integrated into international financial markets. Our findings confirm that, in terms of portfolio flows, FMs have become more similar to EMs than to the rest of LIDCs and are therefore more vulnerable to swings in global financial markets conditions. Accordingly, it is important to have in place frameworks to strengthen FMs' resilience to adverse capital flows shocks. Mode of access: Internet Hacibedel, Burcu. Nkusu, Mwanza. IMF Working Papers; Working Paper ; No. 2016/177 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/177/001.2016.issue-177-en.xml IMF e-Library