scholarly journals Portfolio investment as a factor for the development of the Russian economy as one of the BRIC countries

2017 ◽  
pp. 116-133
Author(s):  
Magdalena Broszkiewicz
Keyword(s):  
Financial Markets ◽  
First Century ◽  
Portfolio Investment ◽  
Domestic Investment ◽  
Financial Flows ◽  
Foreign Investors ◽  
Bric Countries ◽  
Russian Economy ◽  
Twenty First Century ◽  
Portfolio Investments

Portfolio investments have an impact on the development of financial markets around the world, especially in countries of growing importance for the global economy. Russia is one of the countries which are mainly linked to the energy and raw materials sector, so at a time of fluctuations on those markets, its economy is less predictible for international investors. The regulations for investors in this country (also non-residents) need to be improved to overcome the negative effects of world financial crisises and to rebuild financial markets. Russia is also an economy with large amounts of capital to invest, so it is interesting to observe its financial flows to other countries in the situation when existing regulations are stopping capital for domestic investment. The following article analyzes the flows of portfolio investment in Russia in the twenty-first century based on balance of payments data in conjunction with changes in the geopolitical situation and the investment attractiveness of the country. Capital invested in the form of portfolio investments is fragile and often short-term, and it is most vulnerable to periods of recession, causing rapid changes in the flow of this kind of capital. These relationships can be clearly observed in Russia. The strong interest of foreign investors in the Russian economy, in the form of direct and portfolio investments, started in 2000 and lasted until 2006. In the first half of 2008, decreases were slow compared to the record high of the previous year, but from September they accelerated to such an extent that by the end of the year they had reached almost 100%, depicting a sharp decline of foreign investors’ interest in the Russian securities market. This translated into a decline on the Russian stock market. The Russian economy since the beginning of the twenty-first century has experienced a significant influx of foreign capital, including in the form of portfolio investment. However, in comparison with the possibilities of the development of the economic potential of Russia, it is still a small amount.

scholarly journals The nexus between bond liquidity, stock liquidity and foreign portfolio investment

2021 ◽  
Vol 10 (3) ◽  
pp. 92-103
Author(s):  
Godfrey Marozva ◽  
Patricia Lindelwa Makoni
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Bond Market ◽  
Market Liquidity ◽  
Portfolio Investment ◽  
Foreign Investors ◽  
Foreign Portfolio Investment ◽  
Stock Market Liquidity ◽  
Portfolio Investments ◽  
Effective Spread

The purpose of this article was to assess the impact of financial market liquidity on international capital flows in emerging markets. Specifically, the research investigates the effect of bond market liquidity and stock market liquidity on foreign portfolio investments using data for five emerging African countries, being Egypt, Kenya, Mauritius, Nigeria and South Africa, for the period 2000 to 2020. The data was sourced from the Bloomberg and World Bank (WDI) databases. Panel data analysis (fixed effects model) was undertaken using three different liquidity measures: the effective spread; Amihud’s (2002) illiquidity measure; and market impact as measured by trading volume. Our findings revealed mixed results. It was found that stock market liquidity attracted foreign portfolio investments. Although bond market liquidity, as measured by the volume of trade, promoted foreign portfolio investment, it was different for the effective spread, as the higher the effective spread, the higher the inward FPI flows, and vice versa. Results on the effects of the bond effective spread on FPI show that as long as the bonds are above the investable grade, investors are not discouraged by the cost of trading. Our findings thus confirm that FPI inflows are predisposed on liquid and efficient host country financial markets. Further, the entrance of foreign investors in the host country’s domestic financial markets, leads to the enhancing of liquidity in the local market, thus increasing risk sharing between local and foreign investors.

Trends, Events, and Centres, 1993–2006

2020 ◽  
pp. 130-150
Author(s):  
Ranald C. Michie
Keyword(s):  
Financial Markets ◽  
Economic Integration ◽  
Global Market ◽  
Second World War ◽  
First Century ◽  
Financial Flows ◽  
The World ◽  
Uncertain Future ◽  
And Control ◽  
Second World

At the beginning of the 1990s banks, exchanges, and regulators were all in a state of flux, facing a very uncertain future. The certainties of the past had been removed as internal and external barriers crumbled, destroying the world within which they had operated since the end of the Second World War. In its place the world was moving towards global 24-hour financial markets and an elite grouping of megabanks. These developments were driven by global economic integration, developments in technology, the retreat of government from policies favouring ownership and control, and the search by regulators for strategies that could cope with the end of compartmentalization. Though these trends continued in the 1990s and into the twenty-first century they faced numerous obstacles and experienced significant twists and turns that were instrumental in shaping the outcome. Even though barriers to international financial flows were reduced or removed the result was not a seamless global market, as major differences in language, cultures, laws, and taxes remained. These all contributed to the segregation of markets. Though many prophesied that the revolution in communications spelt the death of distance or the end of geography, when it came to the location of financial markets that ignored the fact that time was not absolute but relative. The effect was to generate a continued clustering of financial markets

scholarly journals The Russian economy for 30 years – the path from transformation to disappointment

2017 ◽  
Author(s):  
Вакурин ◽  
Aleksandr Vakurin ◽  
Ковнир ◽  
Vladimir Kovnir
Keyword(s):  
Economic Reform ◽  
Methodological Approach ◽  
First Century ◽  
Social Reforms ◽  
The Past ◽  
Russian Economy ◽  
Preceding Period ◽  
Twenty First Century

Examines the processes of economic and social reforms in the Russian economy over the past 30 years. The authors combine a review of the extensive statistical material and the theoretical and methodological approach to the analysis of the development of the Russian economy. The paper also considered over the preceding period of formation of the problems and prerequisites of economic reform that have shaped the course and results of reforms in the Russian economy at the turn of the twenty-first century. A large amount of sources and authors of theoretical works allow comprehensive idea of the processes of transformation of the Russian economy.

Exploring the Role of Local Financial Markets in the Portfolio Investment-Growth Nexus

2021 ◽  
pp. 175-188
Author(s):  
Friday Osemenshan Anetor ◽  
Simeon Oludiran Akinleye ◽  
Folorunso Sunday Ayadi
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Generalized Method Of Moments ◽  
Recipient Country ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Sub Saharan ◽  
Investment Growth ◽  
Portfolio Investments

In recent times, foreign portfolio investment inflows have been considered pivotal to sub-Saharan Africa's growth (SSA) as they help enhance liquidity and make a substantial fund available for investment. However, some scholars have stressed that the sustainable inflows of portfolio investments and their impact on growth depend on the extent to which the recipient country can develop its local financial markets. As a result, this chapter aims to determine the moderating role of local financial markets in facilitating the effects of portfolio investments on economic growth in 28 SSA between the period 1995-2018. The study employed the system generalized method of moments (SGMM) and found that portfolio investments positively and significantly impact economic growth. However, the study observes that the interaction between portfolio investments and financial market development is negative and significant, presupposing that the relationship between portfolio investment and economic growth is not contingent on local financial markets.

Financial Restrictions Follow The Investment Pause

2014 ◽  
pp. 4-43 ◽  
Author(s):  
B. Zamaraev ◽  
A. Nazarova ◽  
E. Sukhanov
Keyword(s):  
Economic Activity ◽  
Sharp Decrease ◽  
Financial Assets ◽  
Internal Factors ◽  
Financial Flows ◽  
Foreign Investors ◽  
Russian Economy ◽  
The World ◽  
Macroeconomic Indicators ◽  
State Investment

The article considers the interrelationship between external and internal factors of economic growth and their influence on the Russian economy at the turn of 2012-2013. Slowing of basic macroeconomic indicators is connected with fast reduction of financing sources - the investment pause of the biggest Russian companies and a sharp decrease of state investment. Besides, foreign investors withdrew their money from financial assets of Russian companies. The article presents the quality assessment of changes in domestic economic activity and volumes of financial flows between Russia and the rest of the world, taking into account possible impact of geopolitical shock caused by the events around Ukraine.

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