RDP 2009-09: Volatility in International Capital Movements
Equation (2)
σ
(
K
A
B
i
t
G
D
P
i
t
)
=
η
i
+
β
1
F
D
I
s
h
a
r
e
i
t
+
β
2
B
M
M
s
h
a
r
e
i
t
+
β
3
F
l
o
w
O
p
e
n
n
e
s
s
i
t
+
β
4
F
l
o
w
O
p
e
n
n
e
s
s
i
t
−
1
+
β
5
M
a
r
k
e
t
D
e
v
e
l
o
p
m
e
n
t
i
t
+
β
6
F
X
r
e
g
i
m
e
i
t
+
ε
i
t
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqaHdp WCdaqadaqaamaalaaabaGaam4saiaadgeacaWGcbWaaSbaaSqaaiaa dMgacaWG0baabeaaaOqaaiaadEeacaWGebGaamiuamaaBaaaleaaca WGPbGaamiDaaqabaaaaaGccaGLOaGaayzkaaGaeyypa0Jaeq4TdG2a aSbaaSqaaiaadMgaaeqaaOGaey4kaSIaeqOSdi2aaSbaaSqaaiaaig daaeqaaOGaamOraiaadseacaWGjbGaam4CaiaadIgacaWGHbGaamOC aiaadwgadaWgaaWcbaGaamyAaiaadshaaeqaaOGaey4kaSIaeqOSdi 2aaSbaaSqaaiaaikdaaeqaaOGaamOqaiaad2eacaWGnbGaam4Caiaa dIgacaWGHbGaamOCaiaadwgadaWgaaWcbaGaamyAaiaadshaaeqaaO Gaey4kaSIaeqOSdi2aaSbaaSqaaiaaiodaaeqaaOGaamOraiaadYga caWGVbGaam4Daiaad+eacaWGWbGaamyzaiaad6gacaWGUbGaamyzai aadohacaWGZbWaaSbaaSqaaiaadMgacaWG0baabeaaaOqaaiabgUca Riabek7aInaaBaaaleaacaaI0aaabeaakiaadAeacaWGSbGaam4Bai aadEhacaWGpbGaamiCaiaadwgacaWGUbGaamOBaiaadwgacaWGZbGa am4CamaaBaaaleaacaWGPbGaamiDaiabgkHiTiaaigdaaeqaaOGaey 4kaSIaeqOSdi2aaSbaaSqaaiaaiwdaaeqaaOGaamytaiaadggacaWG YbGaam4AaiaadwgacaWG0bGaamiraiaadwgacaWG2bGaamyzaiaadY gacaWGVbGaamiCaiaad2gacaWGLbGaamOBaiaadshadaWgaaWcbaGa amyAaiaadshaaeqaaaGcbaGaey4kaSIaeqOSdi2aaSbaaSqaaiaaiA daaeqaaOGaamOraiaadIfacaWGYbGaamyzaiaadEgacaWGPbGaamyB aiaadwgadaWgaaWcbaGaamyAaiaadshaaeqaaOGaey4kaSIaeqyTdu 2aaSbaaSqaaiaadMgacaWG0baabeaaaaaa@A948@