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Taking gravity online: the role of virtual proximity in international finance

Author

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  • Schmitz, Martin
  • Hellmanzik, Christiane

Abstract

This paper analyses international patterns of bilateral portfolio equity and debt investment in a gravity model framework. We contribute to the literature by exploring the role of virtual proximity JEL Classification: F12, F15, Z10

Suggested Citation

  • Schmitz, Martin & Hellmanzik, Christiane, 2016. "Taking gravity online: the role of virtual proximity in international finance," Working Paper Series 1879, European Central Bank.
  • Handle: RePEc:ecb:ecbwps:20161879
    Note: 1865580
    as

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    File URL: https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp1879.en.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Arnaud Mehl & Martin Schmitz & Cédric Tille, 2019. "Distance(s) and the Volatility of International Trade(s)," IHEID Working Papers 05-2019, Economics Section, The Graduate Institute of International Studies, revised 27 Mar 2019.
    2. McQuade, Peter & Schmitz, Martin, 2019. "America First? A US-centric view of global capital flows," Working Paper Series 2238, European Central Bank.
    3. Galstyan, Vahagn & Maqui, Eduardo & McQuade, Peter, 2019. "International debt and Special Purpose Entities: evidence from Ireland," Working Paper Series 2301, European Central Bank.
    4. Rogelio Mercado Jr., 2018. "Bilateral Capital Flows: Gravity, Push, and Pull," Trinity Economics Papers tep0818, Trinity College Dublin, Department of Economics.
    5. repec:spr:weltar:v:155:y:2019:i:2:d:10.1007_s10290-019-00342-5 is not listed on IDEAS
    6. Lorenz Emter & Martin Schmitz & Marcel Tirpák, 2019. "Cross-border banking in the EU since the crisis: What is driving the great retrenchment?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(2), pages 287-326, May.
    7. Rogelio Mercado Jr., 2018. "Bilateral Capital Flows: Transaction Patterns and Gravity," Trinity Economics Papers tep0218, Trinity College Dublin, Department of Economics, revised Feb 2018.

    More about this item

    Keywords

    cultural proximity; hyperlinks; information; international capital flows; internet; portfolio investment;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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