Dynamics of net foreign asset components in the EMU

Tatiana Cesaroni and Roberta de Santis ()

International Economics, 2018, vol. 156, issue C, 268-283

Abstract: In the last two decades, foreign capital investments have followed different paths in EMU countries. Given their importance for growth and productivity, we analyse the factors underlying the dynamics of foreign direct investments, portfolio debt investments, and portfolio equity investments in EMU countries over the years 1996–2014. We assess how the heterogeneous behaviour between core and peripheral countries can be related to macroeconomic factors (business cycle, trade, financial openness and spreads) and institutional quality. Our results show that financial integration as well as interest rates spread had an impact on the main components of foreign assets which was different between core and peripheral countries. In EMU countries as a whole we find a statistical significant relationship between institutional quality and foreign capital components, which is entirely driven by core countries.

Keywords: Net international investment positions; PEI; FDI and PDI; Institutional quality; Euro area (search for similar items in EconPapers)
JEL-codes: C3 F3 F4 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2110701717302974
Full text for ScienceDirect subscribers only

Related works:
Journal Article: Dynamics of net foreign asset components in the EMU (2018)
Working Paper: Dynamics of net foreign asset components in the EMU (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:inteco:v:156:y:2018:i:c:p:268-283

DOI: 10.1016/j.inteco.2018.04.004

Access Statistics for this article

International Economics is currently edited by Valerie Mignon and Marcelo Olarreaga

More articles in International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().