Information and capital flows revisited: The Internet as a determinant of transactions in financial assets

Changkyu Choi, Dong-Eun Rhee, Yonghyup Oh

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

We extend Portes et al. (2001) by introducing the Internet as a variable, and we test the model empirically by using cross-country panel data on portfolio flows between the United States and other countries from 1990 to 2008. Asymmetric information accounts for the strong negative relationship between international asset transactions and distance. The Internet plays an important role in mitigating information asymmetry between countries and increases the volume of cross-border portfolio flows.

Original languageEnglish
Pages (from-to)191-198
Number of pages8
JournalEconomic Modelling
Volume40
DOIs
Publication statusPublished - 2014 Jan 1
Externally publishedYes

Fingerprint

Portfolio flows
Capital flows
Information flow
World Wide Web
Financial assets
Information asymmetry
Asymmetric information
Panel data
Cross-border
Assets

Keywords

  • Cross-border portfolio flows
  • Gravity equation
  • Home bias
  • Information asymmetries
  • The Internet

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Information and capital flows revisited : The Internet as a determinant of transactions in financial assets. / Choi, Changkyu; Rhee, Dong-Eun; Oh, Yonghyup.

In: Economic Modelling, Vol. 40, 01.01.2014, p. 191-198.

Research output: Contribution to journalArticle

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