Are international fund flows related to exchange rate dynamics?

Li, S., de Haan, J. & Scholtens, B. 19-Oct-2017 In : Open Economies Review.

Research output: Scientific - peer-reviewArticle

Copy link to clipboard



Employing monthly data for 53 countries between 1996 and 2015, we investigate the relationship between international fund flows and exchange rate dynamics. We find strong co-movement between funds flows (as measured with the EPFR Global data base) and bilateral real exchange rates vis-à-vis the USD. This holds both for equity flows and bond flows. However, bond flows have a more significant relationship with RER appreciation than equity flows in developing countries, while in developed countries equity flows play a more important role. Under a more flexible exchange rate regime the real exchange rate appreciation associated with fund flows is higher.
Original languageEnglish
JournalOpen Economies Review
Early online date19-Oct-2017
StateE-pub ahead of print - 19-Oct-2017


  • international fund flows, exchange rate regime, exchange rate, dynamic panel model

View graph of relations

ID: 48004025