Affordable Access

Liberalização da conta de capital e fluxos de portfólio para o Brasil

  • Economics
  • Law


The present work seeks to investigate the dynamics of capital account liberalization andits impact on short run capital flows to Brazil in the period of 1995-2002, consideringdifferent segments such as the monetary, derivative and equity markets. This task ispursued by developing a comparative study of financial flows and examining how it isaffected by the uncovered interest parity, country risk and the legislation on portfoliocapital flows. The empirical framework is based on a vector autoregressive (VAR)analysis using impulse-response functions, variance decomposition and Grangercausality tests. In general terms the results indicate a crucial role played by theuncovered interest parity and the country risk to explain portfolio flows, and a lessrestrictive (more liberalized) legislation is not significant to attract such flows.

There are no comments yet on this publication. Be the first to share your thoughts.