|
|
Geert Bekaert, Campbell R. Harvey
NBER Working Paper No. 6669*
Issued in July 1998
NBER Program(s): AP
IFM
---- Abstract -----
Foreign portfolio flows may reflect deep changes in the functioning of an emerging market economy and its capital markets. Using a database of monthly net U.S. equity flows, we investigate the relation of these flows to the behavior of equity returns, the structural characteristics of the capital markets, exchange rates, and the strength of the economy. We find that increases in equity flows are associated with a lower cost of capital, higher correlation with world market returns, lower asset concentration, lower inflation, larger market size relative to GDP, more trade, and slightly higher per capita economic growth.
*Published: Bekaert, Geert and Campbell R. Harvey. "Foreign Speculators And Emerging Equity Markets," Journal of Finance, 2000, v55(2,Apr), 565-613.
Capital Flows and the Emerging Economies: Theory, Evidence and Controversies, Edwards, Sebastian (NBER), ed., forthcoming.
Would you like an annual subscription to NBER Working Papers? Click
here for more information.
You may purchase this paper on-line in .pdf format
from SSRN.com ($5) for electronic delivery.
Information for subscribers and others expecting no-cost downloads
Machine-readable bibliographic record -
MARC,
RIS,
BibTeX
|
