Institutional Investors Flows and the Geography of Contagion

Damien Puy

No ECO2013/06, Economics Working Papers from European University Institute

Abstract: This paper explores the geography of portfolio flows emanating from institutional investors located in mature markets. We identify precise global and regional dynamics in equity and bond flows. Very few countries happen to receive (or lose) funding in isolation. We also find strong evidence of global contagion: although global waves originate in developed countries, emerging markets’ funding is much more affected. We illustrate this finding by deriving “contagion maps” showing where contagion spreads and with what intensity. In general, our results suggest that “push” effects from advanced market investors affect massively developing countries.

Keywords: Capital flows; Institutional Investors; Mutual Funds; Contagion; Crises; Push-and-Pull factors. (search for similar items in EconPapers)
JEL-codes: F32 F36 G11 G15 G23 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eui:euiwps:eco2013/06

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