**Table 2**

**Drivers of Gross Capital Inflows, 1980‐2017: INDUSTRIAL COUNTRIES** _Dependent Variable: GROSS Inflows, Total and By Type (% GDP) Sample: 22 countries, 1980‐2017 (annual) Estimation method: Instrumental Variables (IV)_

||Gross|Typ|e of Gross Infl|ows|Gross|Typ|e of Gross Infl|ows|
|---|---|---|---|---|---|---|---|---|
||Inflows|FDI|PI|OI|Inflows|FDI|PI|OI|
|VARIABLES|**[1]**|**[2]**|**[3]**|**[4]**|**[5]**|**[6]**|**[7]**|**[8]**|
|_Domestic Factors_|||||||||
|GDP Growth|0.00724|-0.00535|0.0115|-0.000940|0.0133|-0.00208|0.0146*|0.000786|
||(0.0140)|(0.00585)|(0.00771)|(0.00958)|(0.0147)|(0.00598)|(0.00830)|(0.0102)|
|GDP per capita|0.434***|0.0615|0.477***|-0.0800|0.409***|0.132**|0.496***|-0.161|
|_(in logs)_|(0.145)|(0.0606)|(0.0804)|(0.0998)|(0.148)|(0.0592)|(0.0824)|(0.102)|
|CPI Inflation|0.0218***|-0.00396|0.0118***|0.0112***|0.0247***|-0.00162|0.0135***|0.0116***|
||(0.00631)|(0.00262)|(0.00348)|(0.00433)|(0.00649)|(0.00263)|(0.00366)|(0.00448)|
|Primary Balance|0.00329|-0.00111|-0.000239|0.00484***|0.00305|0.000271|0.000207|0.00329*|
|_(% of GDP)_|(0.00272)|(0.00113)|(0.00150)|(0.00186)|(0.00279)|(0.00111)|(0.00155)|(0.00193)|
|Exchange rate flexibility|-0.00376|-0.00339|-0.00341|0.00171|-0.00414|-0.00486**|-0.00407|0.00283|
||(0.00536)|(0.00223)|(0.00296)|(0.00368)|(0.00532)|(0.00214)|(0.00298)|(0.00368)|
|Investment Profile|0.0215***|0.00101|0.00248|0.0179***|0.0136*|0.00619*|0.00228|0.00670|
||(0.00673)|(0.00281)|(0.00372)|(0.00462)|(0.00825)|(0.00332)|(0.00462)|(0.00570)|
|Government Stability|..|..|..|..|0.00543|0.000917|0.00157|0.00581|
||||||(0.00880)|(0.00354)|(0.00493)|(0.00608)|
|Socioeconomic Conditions|..|..|..|..|0.0115|-0.0204***|-0.00435|0.0267***|
||||||(0.0132)|(0.00511)|(0.00711)|(0.00916)|
|Corruption|..|..|..|..|-0.0443**|-0.0222***|-0.0208**|-0.0112|
||||||(0.0180)|(0.00707)|(0.00983)|(0.0124)|
|Trade Openness|-0.175|-0.00423|-0.159**|-0.0114|-0.189|-0.0271|-0.173***|-0.00179|
|_(% of GDP, logs)_|(0.118)|(0.0493)|(0.0653)|(0.0811)|(0.118)|(0.0477)|(0.0663)|(0.0813)|
|Financial Openness|0.117***|-0.0107|0.0456***|0.0667***|0.110***|-0.0157**|0.0421***|0.0680***|
|_(Chinn‐Ito Index)_|(0.0195)|(0.00800)|(0.0106)|(0.0134)|(0.0195)|(0.00769)|(0.0107)|(0.0135)|
|_External Factors_|||||||||
|Foreign Growth|0.00450|0.00608**|0.00145|-0.000821|0.00116|0.00611**|0.000527|-0.00406|
||(0.00698)|(0.00290)|(0.00384)|(0.00479)|(0.00705)|(0.00284)|(0.00395)|(0.00487)|
|VIX Index|-0.101**|0.0108|-0.00396|-0.0941***|-0.121**|0.0102|-0.00899|-0.117***|
||(0.0468)|(0.0192)|(0.0253)|(0.0321)|(0.0542)|(0.0218)|(0.0302)|(0.0374)|
|US Economic Policy|-0.00109**|-0.000531***|-0.000202|-0.000485|-0.000838*|-0.000384**|-7.68e-05|-0.000377|
|Uncertainty|(0.000449)|(0.000187)|(0.000248)|(0.000308)|(0.000460)|(0.000186)|(0.000259)|(0.000318)|
|Commodity Terms of|-0.745|0.113|-0.424|-0.319|-0.717|0.0571|-0.438|-0.257|
|Trade|(0.519)|(0.216)|(0.287)|(0.356)|(0.509)|(0.206)|(0.286)|(0.352)|
|Oil Price|-0.0360|-0.00605|0.0256|-0.0550|-0.0656|-0.0109|0.0158|-0.0721**|
|_(in logs)_|(0.0497)|(0.0205)|(0.0272)|(0.0341)|(0.0495)|(0.0198)|(0.0275)|(0.0342)|
|<br>Minerals and Metals|-0.0435|0.00813|-0.0940**|0.0315|0.0133|0.0137|-0.0761*|0.0732|
|Prices_(in logs)_|(0.0739)|(0.0308)|(0.0407)|(0.0507)|(0.0768)|(0.0310)|(0.0430)|(0.0531)|
|Constant|-0.0702|-1.058|-2.215|2.473|0.181|-1.249|-2.205|2.845|
||(2.612)|(1.088)|(1.442)|(1.792)|(2.564)|(1.034)|(1.437)|(1.772)|
|Observations|554|565|566|554|554|565|566|554|
|No. Countries|22|22|22|22|22|22|22|22|

_Standard errors in parentheses. *** p<0.01, ** p<0.05, * p<0.1_ 20