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Indexed by:会议论文

Date of Publication:2011-01-01

Included Journals:CPCI-SSH

Page Number:625-632

Key Words:institutional quality; equity capital; financial development; panel data

Abstract:The paper constructs the fixed utility model of multinational capital flows on the basis of the declaration to the relationship of that and institutional quality, financial development degree and multinational equity capital flows in developing countries. The empirical analysis relays on the panel data of 30 developing countries from 1996 to 2009 and it shows the influence institutional quality to the multinational equity inflows and outflows. It concludes that institutional quality has an obvious positive effects on capital inflows and negative effects on capital outflows. The improvement of the financial standard will promote the multinational equity capital flows. On top of developing domestic financial markets, developing countries should attach importance to improve overall system quality and the effective capital supplement. Therefore they could attract domestic and international capital better. Besides, the improvement of institutional quality can boost the multinational equity flows via the economic development.