Offshore EME bond issuance and the transmission channels of global liquidity

Soyoung Kim and Hyun Song Shin

Journal of International Money and Finance, 2021, vol. 112, issue C

Abstract: Using offshore affiliates as financing vehicles by emerging market corporates (“offshore issuance”) has become widespread post-crisis. In this study, we investigate the extent to which offshore bond issuance has become a transmission channel of global financial conditions to emerging market economies. Using panel vector auto-regression methods, we find that offshore bond issuance has become more important than onshore bond issuance as a transmission channel of global liquidity after 2010. We also find that offshore bond issuance plays a significant role in countries with strengthened capital account restrictions, but not in countries with weakened capital account restrictions.

Keywords: Capital flows; Global liquidity; Cross-border spillovers; Panel VAR; International debt securities; Onshore vs. offshore (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261560620302928
Full text for ScienceDirect subscribers only

Related works:
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:jimfin:v:112:y:2021:i:c:s0261560620302928

DOI: 10.1016/j.jimonfin.2020.102336

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().