Akademik Veri Yönetim Sistemi
ICE-TEA2021 7th International Conference on Economics , 9 - 11 Nisan 2021, ss.40
Following the development and strengthening of international financial integration, the
determinants of the international capital movements have also varied. Today, it is known that
the value of global financial assets has a gradually growing structure and that its magnitude
accounts for several times of the global output value. Capital flows also show a similar trend in
parallel with financial assets. Accordingly, it is frequently questioned which variable has an
effect on capital flows. Plenty of papers found that either push factors such as Federal policy
rate, Quantitative Easing policy, global liquidity, or uncertainty index like VIX have a
meaningful impact or pull factors such as domestic interest rate, inflation, real growth,
international reserve, and foreign debt stock have a significant effect on the capital flows. From
this point of view, the aim of this study is to capture empirically whether the Covid-19 pandemic
causes a change in the relative importance of push and pull factors on capital inflows. For this
reason, the research employs a data panel model in which the developed and emerging countries
are analyzed separately. What kind of similarities and differences in terms of push and pull
factors between developed and developing countries, and whether these factors have a
significant change before and after Covid-19 are explained.