Cross-Border Capital Flows: A Review and Future Agenda

This scoping review synthesises existing research on cross-border capital flows (CBCF) and theirimpact on performance. The review, which followed established frameworks, screened 3,212articles from various databases published between January 2015 and December 2024, ultimatelysynthesising 22 studies. The analysis found that CBCF generally boosts performance byencouraging innovation, market competition, and entrepreneurial activity, as well as easing liquidityissues. The relationship is influenced by specific mechanisms, such as financial openness andresource allocation efficiency. The study also identified boundary conditions, like cultural distanceand geopolitical partnerships, which determine the extent of these effects. The findings offer keyinsights for policymakers, investors, and researchers looking to leverage CBCF to promotesustainable economic growth, particularly in developing regions.