The Role of Country Concentration in the International Portfolio Investment Positions for the European Union Members
May 1, 2014
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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.
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
Pages:
43
Volume:
2014
DOI:
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Issue:
074
Series:
Working Paper No. 2014/074
Stock No:
WPIEA2014074
ISBN:
9781475543759
ISSN:
1018-5941
