International Investment Patterns
July 1, 2004
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Summary
The paper provides a systematic analysis of bilateral, source and host factors driving portfolio equity investment across countries, using newly-released data on international equity holdings at the end of 2001. It develops a model that links bilateral equity holdings to bilateral trade in goods and services and finds that the data strongly support such a correlation. Larger bilateral positions are also associated with proxies for informational proximity. It further documents that the scale of aggregate foreign equity asset and liability holdings is larger for richer countries and countries with more developed stock markets.
Subject: International investment position, Market capitalization, Portfolio investment, Stock markets, Stocks
Keywords: dependent variable, equity holding, equity investment, market cap, WP
Pages:
45
Volume:
2004
DOI:
Issue:
134
Series:
Working Paper No. 2004/134
Stock No:
WPIEA1342004
ISBN:
9781451855630
ISSN:
1018-5941
