Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/222453
Authors: 
Bremus, Franziska
Kliatskova, Tatsiana
Year of Publication: 
2020
Citation: 
[Journal:] Journal of International Money and Finance [ISSN:] 0261-5606 [Volume:] 107 [Issue:] (Article No.:) 102217
Abstract: 
Motivated by the action plan for a European capital markets union (CMU), this paper analyzes the potential for legal harmonization and convergence in institutional quality to affect capital market integration. Based on hand-collected data on the implementation of EU-directives, our analysis yields three key insights. First, legal harmonization promotes portfolio equity holdings. Second, discrepancies in institutional quality matter primarily for cross-border debt positions. Third, the relationship between external investments and harmonization varies significantly across sectors: the non-bank financial corporations, which account for a large share of portfolio positions, react more to institutional harmonization than do banks and the non-financial private sector.
Subjects: 
Capital market integration
Legal harmonization
Sectoral effects
JEL: 
E02
F21
G15
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Document Version: 
Published Version

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.