One of the objectives of the evolving ASEAN Economic Community (AEC) is to promote free investment flows and freer capital flows. By deepening economic integration among them, ASEAN Member Countries can establish a region-wide production base that will attract more foreign direct investment and...

Using bilateral capital flows data from 10 advanced reporting economies — with over 186 bilateral country pairs — for 2000 to 2016, this paper provides strong evidence on the significance of gravity factors, including distance and bilateral trade ties, in explaining cross-border financial...