Sudden stops of international fund flows: Occurrence and magnitude

Using data of 65 countries from January 2000 (2008) to June 2015, we examine the covariates of sudden stops in fund equity and bond flows. Our results suggest that global, contagion and domestic factors are all important in determining the likelihood of sudden stops. For sudden stops in equity flows, global factors play a more important role in high-income countries. For sudden stops in bond flows, global variables are the most important covariates in emerging countries, whereas domestic variables play a more important role in high-income countries. We also find that global and contagion factors are correlated to the magnitude of sudden stops