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Institutional Investors Flows and the Geography of Contagion

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  • Damien PUY

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.

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Bibliographic Info

Paper provided by European University Institute in its series Economics Working Papers with number ECO2013/06.

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Date of creation: 2013
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Handle: RePEc:eui:euiwps:eco2013/06

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Related research

Keywords: Capital flows; Institutional Investors; Mutual Funds; Contagion; Crises; Push-and-Pull factors.;

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Cited by:
  1. Raddatz, Claudio & Schmukler, Sergio L. & Williams, Tomas, 2014. "International asset allocations and capital flows : the benchmark effect," Policy Research Working Paper Series 6866, The World Bank.

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