||Central Bank Of Barbados
International capital flows occur when residents in one country (the capital exporter) extend loans to or purchase the title to assets from the residents of another country (the capital importer). The International Monetary Fund estimates that the total assets managed by market institutional investors are over US$30 trillion, or roughly the same as total world GDP1. With such a large portfolio of funds seeking good investment opportunities, there can be a significant source of growth in an economy, if they are put towards productive purposes. At the same time, because total global capital flows are so large, relatively small changes in the allocation of funds can result in large and volatile swings for a particular country or region.
Book Review - A Review of Sunanda Sen_s Global Finance at Risk On Real Stagnation and Instability (Dec 2004).pdf