The Role of Country Concentration in the International Portfolio Investment Positions for the European Union Members
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Summary:
This paper examines the international portfolio flows of European Union. Our analysis includes three dimensions: (1) the level of countries portfolio investment concentration (those who invest evenly among counterparties versus those who invest more heavily in some counterparties); (2) the share of total portfolio investment assets invested at the destination; and (3) pre- and during the crisis periods. We find that portfolio investment positions respond differently to macroeconomic variables depending on the level of investment concentration and the share of invested assets. In particular, variables of health of the financial system become important determinants for portfolio investment during the crisis.
Series:
Working Paper No. 2014/074
Subject:
Financial institutions Financial services Foreign exchange Labor Long term interest rates Real effective exchange rates Short term interest rates Stocks Unemployment rate
English
Publication Date:
May 1, 2014
ISBN/ISSN:
9781475543759/1018-5941
Stock No:
WPIEA2014074
Pages:
43
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