Investment regulations implemented by the US government as part of the response to COVID-19 have implications for capital flows. The objective of this paper is to analyse how these regulations affect FDI flows, the potential long-term consequences for the United States and developing economies....

This paper studies how investors allocate their portfolio equity investment internationally. I develop a model to formalize the mechanism by which investors extract the information about foreign target countries from foreign direct investment (FDI): When investors make FDI, due to their control...

Holdings of cross-border bilateral assets are highly responsive to information frictions, market size, transaction costs, and trade ties. But empirical support using transactions data are constrained by the lack of comprehensive bilateral capital flows data covering large sample of economies for...

The unprecedented increase in non-bank financial intermediation, particularly open-end mutual funds and ETFs, over the last two decades, accounts for nearly half of external financing flows to emerging markets exceeding cross-border lending by global banks. Evidence suggests that investment fund...

Over the last two decades, the unprecedented increase in non-bank financial intermediation, particularly open-end mutual funds and ETFs, accounts for nearly half of the external financing flows to emerging markets exceeding cross-border lending by global banks. Evidence suggests that investment...

This paper defines risk-on risk-off (RORO), an elusive terminology in pervasive use, as the variation in global investor risk aversion. Our high-frequency RORO index captures time-varying investor risk appetite across multiple dimensions: advanced economy credit risk, equity market volatility,...

Over 70 academic papers attempt to explain why foreigners invest in US securities. All ignore the vital role of the US broker-dealer. Macroeconomic factors like a trade balance or corporate governance may guide foreign investors toward certain markets. But US broker-dealers provide information...

The paper examines the impacts of trade and capital movement between North and South, which differ in the quality of financial institution, on the productivity distribution and other characteristics of a financially-dependent industry. We find that financial imperfection causes firm...

To examine the effects of heterogeneous labor mobility on the distribution of industries and analyze the subsidy policy for attracting firms, this paper develops an analytically solvable new economic geography model, which incorporates heterogeneous locational preferences and an intra-industry...

To answer whether capital mobility exacerbates or dampens the agglomerative tendency of footloose entrepreneurs, this paper incorporates a footloose-capital with a footloose-entrepreneur manufacturing industry based on a tractable analytical structure with two identical regions. The model shows...