Portfolio Flows into India: Do Domestic Fundamentals Matter?

 
Author/Editor: Gordon, James P. F. ; Gupta, Poonam
 
Publication Date: January 01, 2003
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper analyzes the factors affecting portfolio equity flows into India using monthly data. Flows to India are small compared to other emerging markets, but seem to be relatively less volatile. They also seem to be quite resilient. The paper shows that portfolio flows are determined by both external and domestic factors. Among external factors, LIBOR and emerging market stock returns are important, while the primary domestic determinants are the lagged stock return and changes in credit ratings. In quantitative terms, both external and domestic factors are found to be about equally important.
 
Series: Working Paper No. 03/20
Subject(s): Capital flows | India | Capital inflows | Bonds

Author's Keyword(s): Capital flows | portfolio flows | India
 
English
Publication Date: January 01, 2003
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA0202003 Pages: 37
Price:
US$15.00 (Academic Rate:
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