EconPapers    
Economics at your fingertips  
 

Bilateral Capital Flows: Gravity, Push, and Pull

Rogelio Mercado

Economic Papers from Trinity College Dublin, Economics Department

Abstract: Using bilateral capital flows data from 10 advanced reporting economies—with over 186 bilateral country pairs—for 2000 to 2016, this paper provides strong evidence on the significance of gravity factors, including distance and bilateral trade ties, in explaining cross-border financial asset flows. This finding is new to the capital flows literature that consider push and pull factors. In addition, this study offers new evidence of regional contagion as bilateral capital flows decrease more for country pairs with closer geographic proximity (or with less information frictions) than those that are farther apart when global risk aversion rises. These findings have policy implications on the importance of information frictions, bilateral trade ties, and regional cooperation on bilateral financial asset flows.

Keywords: bilateral capital flows; information frictions; bilateral factors (search for similar items in EconPapers)
JEL-codes: F21 F36 G10 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2018-08
New Economics Papers: this item is included in nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.tcd.ie/Economics/TEP/2018/TEP0818.pdf

Related works:
Chapter: Bilateral capital flows: gravity, push, and pull (2020) Downloads
Working Paper: Bilateral Capital Flows: Gravity, Push, and Pull (2018) Downloads
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:tcd:tcduee:tep0818

Access Statistics for this paper

More papers in Economic Papers from Trinity College Dublin, Economics Department Contact information at EDIRC.
Bibliographic data for series maintained by Colette Angelov ().

 
Page updated 2021-04-29
Handle: RePEc:tcd:tcduee:tep0818