Narrow Your Choices

Refine By Countries

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Business and Economics > Investments: Stocks

You are looking at 1 - 6 of 6 items for :

  • Type: Journal Issue x
  • Economic Integration x
Clear All Modify Search
Cover Staff Discussion Notes
A Capital Market Union for Europe
Mr. Ashok Vir Bhatia
,
Ms. Srobona Mitra
,
Mr. Shekhar Aiyar
,
Luiza Antoun de Almeida
,
Cristina Cuervo
,
Mr. Andre O Santos
, and
Tryggvi Gudmundsson
This note weighs the merits of a capital market union (CMU) for Europe, identifies major obstacles in its path, and recommends a set of carefully targeted policy actions. European capital markets are relatively small, resulting in strong bank-dependence, and are split sharply along national lines. Results include an uneven playing field in terms of corporate funding costs, the rationing out of collateral-constrained firms, and limited shock absorption. The benefits of integration center on expanding financial choice, ultimately to support capital formation and resilience. Capital market development and integration would support a healthy diversity in European finance. Proceeding methodically, the note identifies three key barriers to greater capital market integration in Europe: transparency, regulatory quality, and insolvency practices. Based on these findings, the note urges three policy priorities, focused on the three barriers. There is no roadblock—such steps should prove feasible without a new grand bargain.
Keywords:
SDN; EU counterparty; EU capital market practitioner; euro area; EU capital market rule; EU treaty; EU venture capital funds; Capital market union; financial integration; bilateral portfolio flows; monetary union; investment firm; funding cost; growth performance; private equity; equity valuation; capital market market fragmentation; nonfinancial firm; company information; Capital markets; Securities; Stocks; Mutual funds; Solvency; Europe; Global
Cover IMF Working Papers
Asian Financial Integration: Trends and Interruptions
Mr. Eduardo Borensztein
and
Mr. Prakash Loungani
The paper compares trends in financial integration within Asia with those in industrialized countries and other regional groups. Declines in cross-country dispersion in equity returns and interest rates suggest increased Asian integration, with the process interrupted by crises and global volatility. Cross-border equity and bond holdings have also increased, but Asian countries remain considerably more financially integrated with major countries outside the region than with those within the region. The paper also discusses whether potential benefits of regional financial integration, such as increased risk-sharing and stability of the investor base, have materialized.
Keywords:
WP; investor economy; financial crisis; exchange rate; home bias; financial integration; Asia; equity premium; bond markets; gravity model; risk-sharing; herding; issuer economy Group; equity holdings equation; investors' choice; investor base; risk sharing; Stocks; Stock markets; Securities; Asia and Pacific; Eastern Europe; Global; Europe
Cover IMF Working Papers
Foreign Direct Investment and Regional Trade Agreements: The Market Size Effect Revisited
Ms. Florence Jaumotte
The paper investigates whether the market size of a regional trade agreement (RTA) is a determinant of foreign direct investment (FDI) received by countries participating in the RTA. This hypothesis is tested on a sample of 71 developing countries during the period 1980-99. Evidence is found that the RTA market size had a positive impact on the FDI received by member countries, even more so in the 1990s when such agreements were revived and became more widespread. The size of domestic population also seemed to matter, possibly because of its effect on the availability of the labor supply. It appears, however, that not all countries in the RTA benefited to the same extent from the RTA: countries with a relatively more educated labor force and/or a relatively more stable financial situation tended to attract a larger share of FDI at the expense of their RTA partners. This evidence suggests it is essential for all RTA countries to improve their business environment to the best available in the region. Finally, a partial negative correlation between the FDI received by RTA countries and that received by non-RTA countries possibly reflects a diversion of FDI from non-RTA to RTA countries. As an illustration, FDI benefits are simulated from the creation of a regional trade agreement between Algeria, Morocco, and Tunisia.
Keywords:
WP; market size; stock-to-GDP ratio; FDI inflow; Foreign direct investment; Regional trade agreements; Economic integration; Scale economies; RTA country; FDI stock-to-GDP ratio; FDI model; FDI benefit; Stocks; Financial sector stability; Infrastructure; Maghreb
Cover IMF Working Papers
From Autarky to Integration: Imitation, Foreign Borrowing, and Growth
International Monetary Fund
The effects on growth of the integration of an autarkic country into the world economy are analyzed, focusing on the differing roles of imitation and innovation in human capital accumulation. The country initially concentrates on imitation of foreign knowledge; subsequently, as it approaches the knowledge frontier, innovation plays a greater role. Late developers catch up with the rest of the world more rapidly than early developers, reflecting the relatively large imitation opportunity available to them. Restrictions on foreign borrowing reduce the speed of adjustment to the steady state and lower growth and welfare for the country that imposes them.
Keywords:
WP; interest rate; Growth; Imitation; Innovation; Knowledge Gap; Foreign Borrowing; accumulation function; mobility case; capital accumulation; capital mobility; Human capital; Capital controls; Consumption; Stocks; Global
Cover IMF Working Papers
Japanese Foreign Direct Investment and Regional Trade
Mr. Gabrielle Lipworth
and
Mr. Tamim Bayoumi
We examine the relationship between Japanese FDI outflows, domestic and foreign fixed investment, and the exchange rate. The results indicate that aggregate FDI outflows have been driven by investment in Japan and the exchange rate, while the geographic distribution of such investment has been influenced by foreign economic conditions. We also find that FDI outflows have a temporary impact on exports but a permanent effect on imports. We find no evidence that behavior with respect to East Asia differs from that with respect to North America or Europe.
Keywords:
WP; FDI outflow; FDI flow; stock of FDI; FDI; Hollowing Out; Trade Linkages; FDI inflow; FDI regression; FDI stock; Foreign direct investment; Real exchange rates; Stocks; Exports; Trade balance; East Asia; North America; Asia and Pacific; Northern Europe
Cover IMF Working Papers
Capital and Trade As Engines of Growth in France: An Application of Johansen's Cointegration Methodology
Mr. David T. Coe
and
Mr. Reza Moghadam
An aggregate production function is estimated with recent cointegrating techniques that are particularly appropriate for estimating long-run relationships. The empirical results suggest that the growth of output in France has been spurred by increased trade integration within the European Community and by the accumulation not only of business sector capital—the only measure of capital included in most empirical studies—but also by the accumulation of government infrastructure capital, residential capital, and R&D capital. Calculations of potential output indicate that trade and capital—broadly defined—account for all of the growth in the French economy during the last two decades.
Keywords:
WP; capital; estimate; production function; vector; likelihood ratio test; EC variable; integrating vector; R&D capital; EC trade integration variable; EC integration; Potential output; Production growth; Corporate sector; Stocks; Eastern Europe; East Asia; Southeast Asia; Asia and Pacific