Variable Name

Symbol

Variable Interpretation

Unit

Data Sources

Short-Term International Capital Flow Ratio

scf

(Increase in Foreign Exchange Reserves − Trade Surplus − Foreign Direct Investment)/Current Nominal GDP

%

IMF’s IFS database

CEIC database

Emerging Market GDP

gdp

Real GDP Growth Rate in Emerging Market Countries

%

IMF’s IFS database

Emerging Market Interest Rates

i

The overnight interbank rates of banks in emerging market countries, to some extent, it can reflect the return on investment of the economy

%

IMF’s IFS database

Change in the Exchange Rate

e

(The current average exchange rate/the average exchange rate of the previous period − 1)*100%

emerging markets’ currencies are priced in dollars, and a number greater than zero indicates that the dollar has appreciated

%

CEIC database

US Real GDP Growth

usgdp

Economic growth rates of advanced economies

%

IMF’s IFS database

US Federal Rate

usi

Interest rate in advanced economies

%

IMF’s IFS database

Volatility Index

VIX

Reflect market risks and investor panic levels. The higher the index, the more volatile the stock index changes, the higher the degree of investor panic

%

Wind database

Financial System Development Level

fsd

The ratio of stock market value of emerging market to its current GDP. The greater the value is, the higher the degree of financial system development is

%

Bloomberg database, IMF’s IFS database