Rogelio Mercado, Senior Economist at the SEACEN Centre, has published a paper entitled: "Are Capital Inflows Expansionary or Contractionary in the Philippines" at the Journal of Asian Economics. A working paper version was released as SEACEN WP27/2017. Click to read more
The paper shows the following:
• Both bonds and non-bond capital inflows are expansionary to output and credit growth in the Philippines;
• For bond inflows, a positive impact was found for the short term while no effect was evident for the long term;
• For non-bond inflows, the short-term impact on output and credit was significantly greater, but this was followed in the medium term by a negative impact on output.