The Role of Country Concentration in the International Portfolio Investment Positions for the European Union Members

May 1, 2014

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Format: Chicago

Iuliia Brushko, and Yuko Hashimoto. The Role of Country Concentration in the International Portfolio Investment Positions for the European Union Members, (USA: International Monetary Fund, 2014) accessed September 19, 2024

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 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.

Subject: Financial institutions, Financial services, Foreign exchange, Labor, Long term interest rates, Real effective exchange rates, Short term interest rates, Stocks, Unemployment rate

Keywords: Concentration index, GDP, GDP ratio, Global, Interest rate, International Portfolio, Investment position, Long term interest rates, Portfolio Concentration, Portfolio Flows, Portfolio investment, Real effective exchange rates, Short term interest rates, Stock index, Stock index growth, Stocks, Unemployment rate, WP

Publication Details

Pages:

43
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/074
Stock No:

WPIEA2014074
ISBN:

9781475543759
ISSN:

1018-5941

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