Application of Gravity Framework to Bilateral Mutual Fund Flows in the Asia Pacific Region
Application of Gravity Framework to Bilateral Mutual Fund Flows in the Asia Pacific Region

Author(s): Oleksandra Lemeshko, Veronika Končikova
Subject(s): Economic policy, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: fund flows; gravity model; extensive and intensive margin; the AP5;
Summary/Abstract: Already for more than century investigation of allocation of international investment funds is a topic of considerable interest for both practitioners and academicians. To the former such investigation provides a useful aid for efficient diversification of their investment portfolios. To the latter identification of significance of impact of certain factors on international investment flows may provide a proof for violation of efficient market hypothesis, which, if found, will have far-reaching implications for the theory of finance. Despite being an innovative modern scheme for international investment allocation mutual funds still are puzzling from the viewpoint of factors, which determine the status of a particular fund or national fund industry to be or not to be attractive for international investment flows.

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