Sectoral capital flows: Covariates, co-movements, and controls

This paper assembles a comprehensive sectoral capital flows dataset for 64 advanced and emerging economies from 2000 to 18, including direct, portfolio, and other investment to and from central banks (CB), general government (GG), banks (BKs), non-financial corporates (NFCs) and other financial corporates (OFCs) and a corresponding dataset on capital controls imposed on these sectors. Using these datasets, this paper illustrates the usefulness of a sectoral approach in assessing capital flow covariates, co-movements, and the effectiveness of capital controls. The findings underscore the sensitivity and cyclicality of OFC flows; and offer new evidence on the impact of sectoral controls particularly for BK and OFC sectors in lowering gross inflows to these sectors.