表題番号：2024C-251
日付：2025/02/04
研究課題Portfolio Investment Patterns in East Asia
| 研究者所属（当時） | 資格 | 氏名 | |
|---|---|---|---|
| （代表者） | 国際学術院 大学院アジア太平洋研究科 | 教授 | 菊地 朋生 |
- 研究成果概要
- Portfolio investment by countries in East Asia is concentrated in distant countries. This presents an anomaly as information cost for investment is considered to increase with distance. Using bilateral investment data of 92 reporting and 241 counterpart countries we estimate a structural gravity model to analyze the effect of distance on both equity and debt investment. By interacting distance with heterogenous host country characteristics such as GDP and tax haven status, the distance coefficient for debt investment by countries in East Asia becomes negative and significant converging to that of other countries. This highlights the importance of the market size and tax incentives for debt investment by countries in East Asia. However, the distance coefficient for equity investment by countries in East Asia becomes negative and significant only when we control for a foreign policy alignment index, which is considered to mitigate bilateral investment risk in a similar policy environment. Since foreign policy alignment tends to decrease with distance, the finding suggests that foreign policy alignment increases equity investment in nearby countries more than the proximity suggests and is a key for understanding equity investment by countries in East Asia.