The Driving Factors in Equity Capital Investments: A Study of the Asia-Pacific Coutry Group

Authors : Burçak POLAT

Pages : 419-428

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Publication Date : 2017-09-01

Article Type : Research Paper

Abstract :Even though there is an abundant literature analyzing the determinants of FDI, most of these studies have failed to isolate equity capital flows from other FDI financial components. The distinctive feature of equity capital flows, as compared to other components, is that they represent the initial investments into the host county. The main objective of this study is to investigate the main factors that attract equity capital inflows in the 23 Asia-Pacific countries by employing a dynamic panel data method for the period between 2006 and 2014. Our main findings reveal that CR index, GDP, and interest rates are positively correlated with equity capital investments into the Asian county group
Keywords : Equity Capital, Foreign Direct Investment, Components of FDI, Dynamic Panel Data