|
Based on your IP address, your paper is being delivered by:
|
 |
 |
 |
 |
 |
New York, USA
Processing request.
|
Illinois, USA
Processing request.
|
Brussels, Belgium
Processing request.
|
Seoul, Korea
Processing request.
|
California, USA
Processing request.
|
If you have any problems downloading this paper,
please click on another Download Location above, or
File name: SSRN-id1316364. ; Size: 992K
|
|
Does Money Follow the Flag?
Nandini Gupta
Indiana University - Kelley School of Business
Xiaoyun Yu
Indiana University Bloomington - Department of Finance; China Academy of Financial Research (CAFR)
May 1, 2007
Abstract:
We examine whether bilateral political relations can explain investment and trade flows between the United States and other countries. We treat political relations as endogenous using instrumental variable analysis and investigate whether an exogenous shock to political relations, the 2003 war in Iraq, leads to a shift in economic flows. The results suggest that a deterioration in bilateral relations is followed by a significant decrease in economic flows between the United States and that country. These results are robust to country fixed effects, income, industry growth, financial market development, and risk.
Number of Pages in PDF File: 33
Keywords: international capital flows, foreign portfolio investment, political relations
working papers series
Download This Paper
Date posted: February 17, 2009
; Last revised: September 16, 2009
Suggested CitationGupta, Nandini and Yu, Xiaoyun, Does Money Follow the Flag? (May 1, 2007). Available at SSRN: http://ssrn.com/abstract=1316364 or http://dx.doi.org/10.2139/ssrn.1316364
|
| Feedback to SSRN (Beta) |
|
|
|
|
|
|
