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Financial liberalization and patterns of international portfolio holdings

Author

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  • Pedro Araujo

    ()

  • Olena Mykhaylova

    ()

  • James Staveley-O’Carroll

    ()

Abstract

International financial markets during the past several decades have been characterized by a significant rise in gross international capital flows, increased prominence of nontraditional financial institutions, and globalization of the banking sector. We utilize a 155-country panel framework to present new evidence that financial liberalization is related to reallocation of financial capital around the world. More specifically, we find that deregulation is associated with greater stocks of cross-border financial assets, overall net international indebtedness, and a net portfolio characterized by equity assets and debt liabilities. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Pedro Araujo & Olena Mykhaylova & James Staveley-O’Carroll, 2015. "Financial liberalization and patterns of international portfolio holdings," Empirical Economics, Springer, vol. 49(1), pages 213-234, August.
  • Handle: RePEc:spr:empeco:v:49:y:2015:i:1:p:213-234
    DOI: 10.1007/s00181-014-0863-1
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    References listed on IDEAS

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    Cited by:

    1. James Staveley-O'Carroll & Olena M. Staveley-O'Carroll, 2016. "Impact of Pension System Structure on International Financial Capital Allocation," Working Papers 1601, College of the Holy Cross, Department of Economics.
    2. repec:eee:eecrev:v:95:y:2017:i:c:p:1-22 is not listed on IDEAS

    More about this item

    Keywords

    Financial liberalization; Portfolio holdings; Panel data analysis; E44; F21; F36;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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