countries (hereafter GCC) by employing a recently published database of cross-country portfolio holdings by the International … Monetary Fund. We find that bilateral factors such as trade volume and debt to GDP ratio between the source and GCC (host …) countries play a truly significant role in determining the volume of cross border portfolio inflows to GCC markets. Particularly …

variety of time series tests. These tests provide an evidence of strong linkages among real interest rates within the GCC … countries and between the GCC rates and the US real interest rate in the long run, but they provide weaker evidence for linkages … in the short-run. More - over, the US does not seem to have a dominant financial role in the GCC mar - kets and that the …