The determinants of cross-border debt investments in ASEAN+3: A gravity model approach

Date of Publication

2013

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Applied Economics

Subject Categories

Economics

College

School of Economics

Department/Unit

Economics

Thesis Adviser

Angelo B. Taningco

Abstract/Summary

We study cross-border debt investments in selected ASEAN+3 countries, covering the 2001 - 2011 period and using a gravity model approach. We introduced macroeconomic, financial, geographical and demographic factors on cross border debt investments transaction. We found that macroeconomic factors - the nominal Gross Domestic Product (GDP) level of the destination country and fiscal balance to GDP of the destination country significantly affects bilateral debt investments in the region. Geographical (distance) and demographic (language and colony) factors in our gravity model are found to be significant factors that affect cross-border debt investments. Our study shows that debt markets in the ASEAN+3 region are not frictionless, as cross-border debt investments in the region are being influenced by macroeconomic, geographical and demographic factors which are nominal GDP of destination country, fiscal balance to GDP ratio of destination country, distance, language and colony.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU20078

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

38 leaves ; 28 cm.

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