capital inflow
Definition
The movement of capital into a market or economy. Changes in capital inflow are used to measure the growth of an economy, and steady or increasing capital inflows are usually indicative of positive perceptions of a market in the global economy, or an attractive business environment due to favorable tax structures or business-friendly regulations.
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Inflows and Outflows of Capital: Do They Affect You?Vast capital inflows can harm economies in several ways. Not only can they inflate asset bubbles and spur excessive borrowing, but they can also cause a steep rise in the exchange rate, damaging the c ... Read more
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