IMF Economic Review

, Volume 65, Issue 2, pp 426–465 | Cite as

Non-FDI Capital Inflows in Low-Income Countries: Catching the Wave?

  • Juliana D. AraujoEmail author
  • Antonio C. David
  • Carlos van Hombeeck
  • Chris Papageorgiou


Low-income countries (LICs) are typically characterized by intermittent and very modest access to private external funding sources. Motivated by recent developments in private flows to these economies, this paper makes two contributions: first, it constructs a new comprehensive dataset on gross private capital flows with special focus on non-FDI flows to LICs. Concentrating on LICs and more specifically on gross non-FDI private flows is intentionally aimed at closing a gap in existing datasets where country coverage of developing economies is limited mainly to emerging markets (EMs). Second, using the new data, it identifies several shifting patterns of gross non-FDI private inflows to LICs. A surprising fact emerges: since the mid-2000s periods of surges in gross non-FDI private inflows to LICs are broadly comparable to those of EMs. Moreover, while gross non-FDI inflows to LICs are on average much lower than those to EMs, we show that gross non-FDI inflows to the top quartile of LICs are comparable to those of the median EM and converging to the top quartile of EMs.


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Supplementary material

41308_2016_25_MOESM1_ESM.xlsx (714 kb)
Electronic supplementary material 1 (XLSX 714 kb)
41308_2016_25_MOESM2_ESM.xlsx (2.3 mb)
Electronic supplementary material 2 (XLSX 2365 kb)


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Copyright information

© International Monetary Fund 2017

Authors and Affiliations

  • Juliana D. Araujo
    • 1
    • 2
    Email author
  • Antonio C. David
    • 3
  • Carlos van Hombeeck
    • 4
  • Chris Papageorgiou
    • 5
  1. 1.University of Southern CaliforniaLos AngelesUnited States
  2. 2.Strategy, Policy and Review DepartmentInternational Monetary FundWashingtonUnited States
  3. 3.Western Hemisphere DepartmentInternational Monetary FundWashingtonUnited States
  4. 4.International DirectorateBank of EnglandLondonUnited Kingdom
  5. 5.Research DepartmentInternational Monetary FundWashingtonUnited States

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