International portfolio movements : panel data analysis

In this study, the effects of GDP per capita growth rates, real exchange rates, Standard and Poor’s (S&P) sovereign ratings, the difference between Transition Economies’ (TE) interest rates and USA’s interest rates on TEs’ net portfolio inflows were analyzed. The results showed that GDP per capita growth rates and S&P’s sovereign ratings have positive effects on TEs’ net portfolio inflows. Negative relationship between real exchange rates and TEs’ net portfolio inflows was found. And it was also found that when the positive difference between TEs’ and US interest rates getting increase, net portfolio inflows increase to. -- portfolio net inflows ; transition countries ; CADF ; fixed effect ; cointegration ; and error correction model