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Surges of international fund flows

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  • Li, Suxiao
  • de Haan, Jakob
  • Scholtens, Bert

Abstract

We examine the determinants of the occurrence and magnitude of surges of fund flows, i.e. aggregate cross-border investments in local equity and bond markets by global funds, such as mutual funds, exchange traded funds, closed-end funds and hedge funds. Our analysis, based on monthly data for 55 countries, suggests that although most global factors are significant, they can only explain a small part of the surges in fund flows. Domestic pull factors and contagion factors increase the explanatory power of the model. Our results also suggest that notably domestic factors affect the magnitude of surges.

Suggested Citation

  • Li, Suxiao & de Haan, Jakob & Scholtens, Bert, 2018. "Surges of international fund flows," Journal of International Money and Finance, Elsevier, vol. 82(C), pages 97-119.
    • Handle: RePEc:eee:jimfin:v:82:y:2018:i:c:p:97-119
    DOI: 10.1016/j.jimonfin.2018.01.002
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    Cited by:

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    3. Agudelo, Diego A. & Múnera, Daimer J., 2023. "Who are the vectors of contagion? Evidence from emerging markets," International Review of Financial Analysis, Elsevier, vol. 87(C).
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    8. Ahmet Ihsan Kaya & Lutfi Erden & Ibrahim Ozkan, 2022. "Detecting capital flow surges in developing countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3510-3530, July.
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    More about this item

    Keywords

    Surges; International fund flows; Push and pull factors; Bond flows; Equity flows;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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