How international financial flows affect stock markets?

Hongwei Chuang, Navruzbek Karamatov

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

Relying on the IMF Coordinated Portfolio Investment Survey, which reports countries’ bilateral investments in financial assets at end-2001 to end-2015, this article shows that a country’s stock market growth is not only spatially correlated with those of nearby countries, but also positively associated with the magnitude of connectedness of the country’s international investments in debt within a dynamic financial investment flow network. The positive relation arises because debts have become an increasingly important source of capital for developing countries.

Original languageEnglish
Pages (from-to)1535-1546
Number of pages12
JournalApplied Economics Letters
Volume25
Issue number21
DOIs
Publication statusPublished - 2018 Dec 15

Keywords

  • CPIS
  • financial network
  • international capital flows
  • spatial panel regression

ASJC Scopus subject areas

  • Economics and Econometrics

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