Institutional investors flows and the geography of contagion
Title: Institutional investors flows and the geography of contagion
Author: PUY, Damien
Series/Number: EUI ECO; 2013/06
This paper explores the geography of portfolio flows emanating from institutional investors located in mature markets. We identify precise global and regional dynamics in equity and bond flows. Very few countries happen to receive (or lose) funding in isolation. We also find strong evidence of global contagion: although global waves originate in developed countries, emerging markets’ funding is much more affected. We illustrate this finding by deriving “contagion maps” showing where contagion spreads and with what intensity. In general, our results suggest that “push” effects from advanced market investors affect massively developing countries.
Subject: Capital flows; Institutional investors; Mutual funds; Contagion; Crises; Push-and-Pull factors
Type of Access: openAccess; openAccess