International Capital Flows, Returns and World Financial Integration
- Topics:
- Equity,
- Investment and Capital Markets
- Tags:
- Finance,
- Financial,
- Financial Accounting,
- Financial Integration,
- National Bureau Of Economic Research
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Overview: International capital flows have increased dramatically since the 1980s, with much of the increase being due to trade in equity and debt markets. Such developments are attributed to the increased integration of world financial markets. The paper presents a model that allows examining how greater integration in world financial markets affects the behavior of international capital flows and financial returns. The model predicts that international capital flows are large (in absolute value) and very volatile during the early stages of financial integration when international asset trading is concentrated in bonds.
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Format: PDF | Size: 529KB | Date: Oct 2005 | Pages: 50




