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Capital Flows and the Behavior of Emerging Market Equity Returns / Geert Bekaert, Campbell R. Harvey.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Bekaert, Geert.
Contributor:
National Bureau of Economic Research.
Harvey, Campbell R.
Series:
Working Paper Series (National Bureau of Economic Research) no. w6669.
NBER working paper series no. w6669
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1998.
Summary:
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.
Notes:
Print version record
July 1998.

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