ABSTRACT
This chapter aims to map the theoretical results to the existing empirical findings in the literature. Each analysis has its strengths and weaknesses, regardless of theoretical or empirical analysis. Also, blind spots may arise for specific analysis, especially when specific methods have been taken as given without further examination. In a theoretical framework, it is simple to differentiate the home countries from the host countries and to analyse the impacts to the home and to the host countries. In a theoretical framework, it is simple to specify the time when one country opens to capital flows and to analyse the impacts on the macro variables. Capital flows have their impacts on the economy. The purpose of capital flows is to seek investment opportunities, whether direct investment or portfolio investment. The chapter also presents some closing thoughts on the key concepts discussed in the preceding chapters of this book.
