IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v141y2024ics0264999324002591.html
   My bibliography  Save this article

Financial, institutional, and macroeconomic determinants of cross-country portfolio equity flows: The case of developed countries

Author

Listed:
  • Afonso, António
  • Alves, José
  • Beck, Krzysztof
  • Jackson, Karen

Abstract

This paper examines the determinants of financial equity flows to investigate the role played by business cycles, government debt and sovereign rating scores, and whether the impact depends on the magnitude and direction of the flows. Using a new, richer dataset of flows among developed countries over 2001–2018, our key findings are as follows: (i) equity flows are more intense among countries at the same stage of the business cycle (ii) equity flows are higher to countries with a relatively lower debt to GDP ratio (iii) financial and macroeconomic variables are important for big equity flows, while institutional variables are important for the small flows. Overall, considering a wider range of factors under-explored in the literature, we provide a stronger understanding of the development of risks in the financial sector as well as the linkages with other sectors of the economy.

Suggested Citation

  • Afonso, António & Alves, José & Beck, Krzysztof & Jackson, Karen, 2024. "Financial, institutional, and macroeconomic determinants of cross-country portfolio equity flows: The case of developed countries," Economic Modelling, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:ecmode:v:141:y:2024:i:c:s0264999324002591
    DOI: 10.1016/j.econmod.2024.106902
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999324002591
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econmod.2024.106902?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. António Afonso & José Alves & Lucas Menescal & Sofia Monteiro, 2024. "Determinants of Trade Partner Concentration: An Analysis for European Countries," CESifo Working Paper Series 11481, CESifo.

    More about this item

    Keywords

    OECD countries; Business cycle; Sovereign ratings; Government debt; Semi-parametric regressions; Quantile regressions;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:141:y:2024:i:c:s0264999324002591. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.