The EMU and German Cross Border Portfolio Flows

Berkel, Barbara

Vorschau

PDF
meadp_110_06.pdf - Veröffentlichte Version
Download (1MB)

URL:	https://ub-madoc.bib.uni-mannheim.de/1576
URN:	urn:nbn:de:bsz:180-madoc-15763
Dokumenttyp:	Arbeitspapier
Erscheinungsjahr:	2006
Titel einer Zeitschrift oder einer Reihe:	MEA Discussion Papers
Band/Volume:	110
Ort der Veröffentlichung:	Mannheim
Sprache der Veröffentlichung:	Englisch
Einrichtung:	Fakultät für Rechtswissenschaft und Volkswirtschaftslehre > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC-Schriftenreihe:	Veröffentlichungen des MEA (Mannheim Research Institute For the Economics of Aging) > MEA Discussion Papers
Fachgebiet:	300 Sozialwissenschaften, Soziologie, Anthropologie
Fachklassifikation:	JEL: G15 F36 F21 ,
Normierte Schlagwörter (SWD):	Portfolio-Investition , Internationale Kapitalbewegung , Europäische Union , Internationaler Kreditmarkt
Freie Schlagwörter (Englisch):	European financial market integration , EMU , gravity model of bilateral asset trade , gross portfolio flows
Abstract:	The paper analyzes the effect of European financial integration, especially of the EMU, on gross portfolio flows between Germany and 47 countries from 1987 to 2002. A gravity model of bilateral asset trade is estimated. The results reveal that there is substantially more portfolio trade between Germany and countries also participating in the EMU. This effect evolves smoothly over time. In particular in 2002, cross-border portfolio flows between Germany and EMU countries are significantly larger compared to flows between Germany and Denmark, the UK, and Sweden which are part of the EU-15 but not of the Euro area. Moreover, changes in exchange rate volatility, financial market development and increased real economic integration among EMU countries have significant effects on German gross portfolio flows, but they can not account for the positive effect on German gross portfolio flows due to the formation of the EMU. Finally, the EMU effect on gross portfolio flows is revealed to be larger for countries with more developed banking and equity markets and for country pairs with more correlated business cycles.
Zusätzliche Informationen: