This paper investigates the determinants of international transactions in financial assets empirically. We extend the gravity model in Portes et al. (2000) by introducing an internet variable. Using cross-country panel data on the portfolio flows between the US and other countries from 1990 to...

This note revisits the conjecture that the use of broadband internet lowers transaction costs and thereby inflation. Using a macro-economic panel of OECD countries, it replicates and expands previous estimations by Yi and Choi (2005). We confirm the direction of the results, but also highlight a...

Through panel-data regressions, we found that both per capita income level and growth turn out to converge when the trade intensity ratio increases between the countries. Geographical proximity and language similarities also turn out to be associated with convergence in both income level and growth.