01942cas a2200265 a 4500 AALejournalIMF017266 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475558555 1018-5941 BD-DhAAL BD-DhAAL Igan, Deniz. Real Effects of Capital Inflows in Emerging Markets / Deniz Igan, Ali Kutan, Ali Mirzae. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (50 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 We examine the association between capital inflows and industry growth in a sample of 22 emerging market economies from 1998 to 2010. We expect more external finance dependent industries in countries that host more capital inflows to grow disproportionately faster. This is indeed the case in the pre-crisis period of 1998-2007, and is driven by debt, rather than equity, inflows. We also observe a reduction in output volatility but this association is more pronounced for equity, rather than debt, inflows. These relationships, however, break down during the crisis, hinting at the importance of an undisrupted global financial system for emerging markets to harness the growth benefits of capital inflows. In line with this observation, we also document that the inflows-growth nexus is stronger in countries with well-functioning banks. Mode of access: Internet Kutan, Ali. Mirzae, Ali. IMF Working Papers; Working Paper ; No. 2016/235 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/235/001.2016.issue-235-en.xml IMF e-Library