**Table 10a: Decomposition of net capital inflows: Absolute ratings**

||Net FDI<br>|Inflows<br>|Net Portfo<br>|lio Inflows<br>|Net Banki<br>|ng Inflows<sup>††</sup><br>|
|---|---|---|---|---|---|---|
||Pre-Crisis<br>(1)|Post-Crisis<br>(2)|Pre-Crisis<br>(3)|Post-Crisis<br>(4)|Pre-Crisis<br>(5)|Post-Crisis<br>(6)|
|L.Net Inflow<sup>†</sup>|0.193***|0.117***|0.053|-0.044|0.033|0.047|
||(0.040)|(0.036)|(0.039)|(0.039)|(0.039)|(0.038)|
|S&P rating|0.183***|0.066**|0.037|0.113|0.261***|0.001|
||(0.054)|(0.032)|(0.045)|(0.076)|(0.071)|(0.065)|
|Growth diff.|-0.016|0.073**|0.014|-0.084|0.118|0.129*|
||(0.067)|(0.033)|(0.056)|(0.081)|(0.088)|(0.069)|
|Interest rate diff.|0.053|0.111**|0.037|-0.005|0.017|0.238***|
||(0.079)|(0.045)|(0.066)|(0.107)|(0.104)|(0.092)|
|VIX|-0.033|0.031**|-0.060***|-0.046|0.061*|-0.056*|
||(0.027)|(0.015)|(0.023)|(0.036)|(0.035)|(0.031)|
|Country fixed effects|Y|Y|Y|Y|Y|Y|
|No. of obs.|781|859|781|859|781|859|
|No. of countries|26|26|26|26|26|26|
|Adj. R-squared|0.347|0.333|0.186|0.051|0.158|0.115|

Notes: All regressions are estimated using a dynamic panel data model with a lagged dependent variable. The sample includes unbalanced quarterly panel data for 26 emerging and frontier market economies. The pre-crisis period includes Q1 1998-Q2 2008 while the post-crisis period includes Q2 2009-Q4 2017. Heteroskedasticityconsistent robust standard errors are presented in parenthesis. * indicates significance at 10 percent, ** at 5 percent, and *** at 1 percent.<sup>†</sup> Lagged value corresponds to the inflow category in the row header.<sup>††</sup> _Net other investment inflows_ (Balance of Payments category) largely capture cross-border banking inflows.

**Table 10b: Decomposition of net capital inflows: Relative ratings**

||Net FD<br>|I inflows<br>|Net Portfo<br>|lio Inflows<br>|Net Banki<br>|ng Inflows<sup>††</sup><br>|
|---|---|---|---|---|---|---|
||Pre-Crisis<br>(1)|Post-Crisis<br>(2)|Pre-Crisis<br>(3)|Post-Crisis<br>(4)|Pre-Crisis<br>(5)|Post-Crisis<br>(6)|
|L.Net Inflows<sup>†</sup>|0.204***|0.117***|0.053|-0.047|0.051|0.045|
||(0.040)|(0.036)|(0.039)|(0.039)|(0.039)|(0.038)|
|Relative rating|0.130**|0.061**|0.012|0.163**|-0.015|0.053|
||(0.056)|(0.030)|(0.047)|(0.072)|(0.077)|(0.062)|
|Growth diff.|0.018|0.071**|0.021|-0.088|0.167*|0.127*|
||(0.067)|(0.033)|(0.056)|(0.081)|(0.092)|(0.069)|
|Interest rate diff.|0.017|0.112**|0.030|0.020|-0.026|0.259***|
||(0.078)|(0.045)|(0.066)|(0.107)|(0.109)|(0.093)|
|VIX|-0.069**|0.029*|-0.066***|-0.051|0.022|-0.057*|
||(0.027)|(0.015)|(0.023)|(0.036)|(0.037)|(0.031)|
|Country fixed effects|Y|Y|Y|Y|Y|Y|
|No. of obs.|781|859|781|859|781|859|
|No. of countries|26|26|26|26|26|26|
|Adj. R-squared|0.344|0.333|0.185|0.055|0.143|0.116|

Notes: All regressions are estimated using a dynamic panel data model with a lagged dependent variable. The sample includes unbalanced quarterly panel data for 26 emerging and frontier market economies. The pre-crisis period includes Q1 1998-Q2 2008 while the Post-Crisis period includes Q2 2009-Q4 2017. Heteroskedasticityconsistent robust standard errors are presented in parenthesis. * indicates significance at 10 percent, ** at 5 percent, and *** at 1 percent.<sup>†</sup> Lagged value corresponds to the inflow category in the row header.<sup>††</sup> _Net other investment inflows_ (Balance of Payments category) largely capture cross-border banking inflows.

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