Foreign capital flows can impact economic growth and financial market stability in emerging market economies. Foreign direct investment and bank loans can boost GDP growth, while foreign bond and equity investments may lower it. During a crisis, volatility in foreign capital flows can increase stock market volatility. Bank loan volatility has a bigger impact than equity investment. Higher volatility in certain types of foreign investments can worsen foreign exchange market volatility during a crisis. Policymakers should consider implementing measures to manage capital flows to maintain economic and financial stability.