National Interests: Priorities and Security

An impact of international capital flows on economic security of emerging markets

Vol. 13, Iss. 10, OCTOBER 2017

Received: 6 April 2017

Received in revised form: 17 July 2017

Accepted: 24 August 2017

Available online: 27 October 2017


JEL Classification: E20, Е21, F21, F52

Pages: 1870–1881

Petrenko I.A. Peoples' Friendship University of Russia, Moscow, Russian Federation

Importance The article investigates how international capital flows in emerging economies influence their foreign economic security.
Objectives The research focuses on the key issue (international capital flows) of foreign economic activity in ensuring economic security of emerging economies. I also determine primary activities for development and potential tools to address the issue.
Methods The methodology is based on generic and special methods of research, i.e. methods of empirical research (data collection and processing), comprehensive approach, comparative research, synthesis of theoretical and practical material.
Results As I find out, international capital flows influence economic security of emerging economies. Although emerging economies managed to alleviate consequences of the global financial crisis through a set of special measures and activities, those economies still face considerable difficulties in regaining the pre-crisis rates of growth.
Conclusions and Relevance If the national economic security is ensured, it will create the favorable background for the stability of national economies and global economy as a whole. In setting out their economic policy, emerging economies shall configure their regulatory framework so that it would reduce currency risks and make them unreasonable. Macroprudential measures are advisable to keep the current level of borrowings, rearrange funding stream to the real economy and mitigate threats to financial stability.

Keywords: emerging market, international capital flows, foreign economic security, national interests


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