ABSTRACT
This chapter summarizes the empirical findings from the econometric models, along with the descriptive statistics. It investigates impacts of the globalization factors on capital inflows and outflows. Portfolio investment is the most rapidly increasing type of capital, and the portfolio gross flow model is the one in which all globalization factor variables are significant. This implies that the portfolio market has been the greatest beneficiary of globalization. Globalization affects the amount of gross capital flows as well as the type of external financial resources available to different income groups. In globalized financial markets, the direction and amount of capital inflow and outflow thus will also be influenced by the globalization factors. Globalization factors can change the traditional direction of international capital flows in two ways: via the effects of globalization factors in general financial items; and via the effect of capital shift from general financial items to globalization-effective capital.
