Portfolio investment of the OIC countries and their implications on trade

Abstract

Summarizes the net capital flows from industrial to developing/transitional countries 1970‐1996 and recent changes in their equity and bond markets; and identifies the factors affecting these portfolio flows and risk/return behaviour in OIC stock markets. Uses monthly stock return data from ten OIC countries to demonstrate that despite their volatility they might offer opportunities for portfolio diversification; and uses cointegration methods to investigate the dynamic relationships between them. Discusses the causes of the Asian currency crisis and its impact on these stock marekts; and considers what trade and development policies OIC countries should adopt to improve their economies.

Citation

Kabir Hassan, M. (2003), "Portfolio investment of the OIC countries and their implications on trade", Managerial Finance, Vol. 29 No. 2/3, pp. 122-157. https://doi.org/10.1108/03074350310768715