TAILIEUCHUNG - International portfolio movements: Panel data analysis

In this study, the effects of GDP per capita growth rates, real exchange rates, Standard and Poor’s (S&P) sovereign ratings, the difference between Transition Economies’ (TE) interest rates and USA’s interest rates on TEs’ net portfolio inflows were analyzed. The results showed that GDP per capita growth rates and S&P’s sovereign ratings have positive effects on TEs’ net portfolio inflows. Negative relationship between real exchange rates and TEs’ net portfolio inflows was found. And it was also found that when the positive difference between TEs’ and US interest rates getting increase, net portfolio inflows increase to. | Journal of Applied Finance Banking 2012 189-198 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2012 International Portfolio Movements Panel Data Analysis Burhan Kabadayi1 O. Selcuk Emsen2 and Murat Nisanci3 Abstract In this study the effects of GDP per capita growth rates real exchange rates Standard and Poor s S P sovereign ratings the difference between Transition Economies TE interest rates and USA s interest rates on TEs net portfolio inflows were analyzed. The results showed that GDP per capita growth rates and S P s sovereign ratings have positive effects on TEs net portfolio inflows. Negative relationship between real exchange rates and TEs net portfolio inflows was found. And it was also found that when the positive difference between TEs and US interest rates getting increase net portfolio inflows increase to. JEL classification numbers C32 F31 F32 Keywords Portfolio net inflows Transition Countries CADF fixed effect cointegration and error correction model 1 Introduction After the Berlin Wall fell down in 1990s many socialist countries started to reform their economies. They tried to build up open marked oriented institutions and corporations. In order to meet households import demand and to obtain production inputs external financial sources are vitally important in these 1 Erzincan University e-mail burhankabadayi@ 2 Ataturk University e-mail osemsen@ 3 Erzincan University e-mail muratnisanci@ Article Info Received June 13 2012. Revised August 27 2012 Published online October 15 2012 190 International Portfolio Movements Panel Data Analysis countries. In a comprehensive expression they need external sources to finance investment and to have sustainable growth rates. One of the important ways to have external sources is international capital market. International capital movement is classified as foreign direct investments and portfolio movements. Foreign direct investment FDI is a long term and .

• Kinh tế học
• Portfolio net inflows
• Transition Countries
• Fixed effect
• Error correction model
• Panel data analysis
• International portfolio movements