Impacts of International Capital Flow on Host Countries - Differentiating the Impacts of FDI with Portfolio Investment


Yao HONGXING , Philip Agyei PEPRAH , Geraude Fortune M. KOUNDE ,

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Volume 8 - June 2019 (06)


One of the major aspects of movement towards economic globalisation or integration through the world economy is international capital flows. The extraordinary surge in global capital flows in the recent few years and the resulting fluctuations in the ‘globalised markets’ have encouraged scholars’ interest to inspect both hypothetically and empirically the impelling factors and implications of international capital structure. FDI and portfolio investment have long been reflected as sovereign forms of foreign capital flow. This paper has analysed the impacts of FDI on portfolio investments and benefits FDI can have on host countries. This paper has further discussed the major features of FDI and portfolio investment in terms of its profitability and volatility


FDI, portfolio investment, host country, host countries, capital flow


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