Financial stability and international capital movements towards developing countries: Panel data analysis

The aim of this study is to estimate the relationship between international capital movements towards developing countries and financial instability indicators by panel data analysis. The data used in the study are annual data from the DB, IMF and FRED databases for the period 2008-2019. At the end of the study, a significant association was found between indicators of financial fragility and capital flows. In the first part of the study, the concept of capital movements is explained. In the second part, the phenomenon of financial stability and crisis is analyzed. In the third section, the method and findings of the study are presented. Keywords: international capital movements, financial fragility, panel data analysis