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A Microstructure Approach to Gross Portfolio Inflows. The Case of Chile

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  • Bárbara Ulloa
  • Carlos Saavedra
  • Carola Moreno

Abstract

In this paper we explore the determinants of portfolio equity gross inflows (foreign liabilities) to the Chilean economy in dimensions that are novel to the literature. Using a unique dataset proprietary to the Central Bank of Chile that records each transactio n of foreign investors on domestic portfolio equity instruments, we analyze aggregated and disaggregated flows, the latter identifying the type of foreign investor behind the flow. Our findings indicate that inward, and not outward, flows are those that r espond to the traditional push/pull factors. Moreover, some pull factors that appear to be statistically non - significant for aggregate flows, become important to flows from specific investor types, and the economic relevance of these factors also varies am ong investors.

Suggested Citation

  • Bárbara Ulloa & Carlos Saavedra & Carola Moreno, 2015. "A Microstructure Approach to Gross Portfolio Inflows. The Case of Chile," Working Papers Central Bank of Chile 760, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:760
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_760.pdf
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    References listed on IDEAS

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    Cited by:

    1. Sebastián Claro & Carola Moreno, 2015. "Long-term rates and the term premium: evidence from Chile," BIS Papers chapters, in: Bank for International Settlements (ed.), What do new forms of finance mean for EM central banks?, volume 83, pages 97-112, Bank for International Settlements.

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