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What determines the portfolio investment flows to Central and Eastern European Countries in the European Union 2001-2017?

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  • Donny TANG

    (Temple University, Philadelphia, USA)

Abstract

This study estimates whether the Central and Eastern European (CEE) financial market integration and higher trade flows can explain the foreign portfolio investment inflows since EU accession during 2001-2017. The results suggest that the stock market development has facilitated the foreign portfolio equity flows during the European Union (EU) and crisis periods. But it only has positive effect on the foreign portfolio debt flows during the EU period. In contrast, the banking sector development has very weak effect on the foreign portfolio investment. The higher bank development has only increased the foreign portfolio equity flows during the EU period.

Suggested Citation

  • Donny TANG, 2020. "What determines the portfolio investment flows to Central and Eastern European Countries in the European Union 2001-2017?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(625), W), pages 21-42, Winter.
    • Handle: RePEc:agr:journl:v:4(625):y:2020:i:4(625):p:21-42
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