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Geographical Trade Structure and Patterns of International Portfolio Investment-the Case of Australia

In: Challenges and Opportunities for Trade and Financial Integration in Asia and the Pacific

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Listed:
  • Kevin Daly

    (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP))

  • Anil Mishra

    (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP))

Abstract

This chapter analyzes the geography of Australia's international portfolio investment using the International Monetary Fund's coordinated Portfolio Investment Survey dataset. It provides some answers to the following questions: (a) why does the pattern of Australia's capital flows not match that of its trade flows; (b) which bilateral factors are responsible for explaining Australia's portfolio equity investment holdings; and (c) are cultural, informational factors important in explaining Australia's portfolio allocations; and (d) how regulatory and legal variables affect equity portfolio holdings? In general, the paper attempts to identify and quantify those determinants that drive Australia's overseas financial investments. In the aftermath of the recent global financial crisis it would appear that information related to those factors that influence investment decisions is now more urgent than at any time in the history of global funds management. More research into the determinants of a country's international investment position would therefore appear desirable, given that the number of relevant drivers appear to be highly volatile and of a country-specific nature.

Suggested Citation

  • Kevin Daly & Anil Mishra, 2009. "Geographical Trade Structure and Patterns of International Portfolio Investment-the Case of Australia," STUDIES IN TRADE AND INVESTMENT, in: Mia Mikic (ed.), Challenges and Opportunities for Trade and Financial Integration in Asia and the Pacific, volume 67, chapter 7, pages 120-133, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    • Handle: RePEc:unt:ecchap:tipub2563_chap7
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    File URL: http://www.unescap.org/tid/publication/tipub2563_chap7.pdf
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    References listed on IDEAS

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    1. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    2. World Bank, 2003. "World Development Indicators 2003," World Bank Publications - Books, The World Bank Group, number 13920.
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    More about this item

    Keywords

    Australia; capital; portfolio; global financial crisis; IMF;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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