Foreign portfolio investment has proved to be more volatile and sensitive to the changes in its determinants, in the asian financial crisis this study discusses factors that affect portfolio investment in pakistan with. The determinants of portfolio investment model are estimated by using the portfolio balance approach and covered interest parity rates-cirp among the factors that have been considered in estimating the determinants of portfolio investment are foreign and domestic interest rate, real foreign exchange rates, foreign income, domestic income, and. Foreign portfolio investment means the capital inflow in the country or foreign investment came into the country basically, foreign portfolio investment is the investment in the stocks and shares of the host country by the.
Portfolio investment (ie, debt and equity)—expand the potential sources of capital available to countries, raising productivity and boosting growth studies find that foreign direct investment (fdi) has a. Determinants of foreign portfolio investment: evidence from sub-saharan africa by ruth atobrah (10251657) a thesis submitted to the, university of ghana, legon in partial fulfillment of the requirements for the award of master of philosophy in finance degree july, 2015. This paper analyses the determinants of portfolio flows to india for the period october 1995 to october 2011 the determinants of disaggregated component of portfolio flows (fpi) ie foreign institutional investment flows (fiis) and investment flows received through american/global depository receipts (adr/gdrs) are also examined.
3 i introduction there is a long-standing impression among policymakers that foreign direct investment is more conducive to long-run growth and development than other forms of capital inflows. Read foreign portfolio investment flows to india: determinants and analysis, world development on deepdyve, the largest online rental service for scholarly research with thousands of academic publications available at your fingertips. Abstract this paper investigates the determinants of foreign portfolio investment flows into a market on which restrictions for foreign investments were recently removed, the finnish stock market. Of foreign direct investment (fdi) by empirically analyzing qualitative index of business operation conditions is an various factors - including political risk, business important determinant of fdi in countries that receive.
The determinants of disaggregated components of portfolio flows ie, foreign institutional investment flows (fii) and american/global depository receipts (adr/gdr) are also analyzed, in order to assess whether different components of portfolio flows are driven by similar or different factors. This study investigates the determinants of foreign portfolio investment in jordan using series of data covering the period from 2000 to 2016. Inflow could be in form of foreign direct investment (fdi), foreign portfolio investment (fpi), official inflows (oi) and commercial loans (cl) (jeffrey & spaulding, 2005) according to ndem, okoronkwo & nwamuo determinants of foreign direct investment inflow to nigeria. Foreign portfolio investment (fpi) affects the real economy through stock market, so the research study analyzes the impact of fpi on the national economy of china. The purpose of the study is to explore the determinants of foreign institutional investments (fiis) in india through the autoregressive distributed lag (ardl) bounds testing approach using quarterly time series data, the empirical analysis was carried out for the period january 2004 to december 2011.
A foreign direct investment (fdi) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country it is thus distinguished from a foreign portfolio investment by a notion of direct control. Foreign portfolio investment in some developing countries: a study of determinants and macroeconomic impact created date: 20160731214853z. Motivated by the need to analyse the factors behind portfolio inflows of developing countries, this study aims to investigate the determinants of portfolio inflows (pi) of sub-saharan africa (ssa. The determinants of disaggregated component of portfolio flows (fpi) ie foreign institutional investment flows (fiis) and investment flows received through american/global depository receipts (adr/gdrs) are also examined.
Determinants of investment flows into emerging markets carlos andrés amaya g peter rowland banco de la república abstract the understanding of foreign investment flows is important for emerging market policy. Foreign portfolio investment has proved to be more volatile and sensitive to the changes in its determinants, in most country’s financial crisis this study would also be of interest to policy. This paper analyzes the macroeconomic determinants of portfolio flows to india and finds that lower exchange rate volatility and greater risk diversification opportunities are conducive to portfolio flows however, higher equity returns of other emerging markets discourage these flows other.
Determinants of foreign portfolio investment in the country this study would contribute to existing literature by attempting to explore the role of foreign portfolio investment in the economic growth of nigeria not only to affirm its need but also to appreciate the need for protective. Since foreign direct investment (fdi) flows are not prone to speculative investment unlike foreign portfolio investment, these are expected to have a greater potential for contributing to higher economic growth of the host country. Determinants of foreign direct investment bruce a blonigen, jeremy piger nber working paper no 16704 issued in january 2011 nber program(s):international trade and investment empirical studies of bilateral foreign direct investment (fdi) activity show substantial differences in specifications with little agreement on the set of covariates that are (or should be) included.