Does the Relative Importance of the Push and Pull Factors of Foreign Capital Flows Vary Across Quantiles?

We empirically gauge the relative importance of various push and pull factors for magnitude foreign flows to 51 emerging markets (EMs) across quantiles. propose a quantile regression dynamic panel model with fixed effects reveal several new findings: (a) Global risk aversion regional contagion are generally significant most (b) Foreign short-term retreat less from EMs stronger fundamentals during stress episodes. (c) that previously experienced larger portfolio debt bank inflows tend suffer more Hence, we provide novel evidence supporting global financial cycle hypothesis, investor differentiation “more-in-more-out” hypothesis.