@article{fe9f9a37e444469ea7b337cf52c908c4,
title = "Information and capital flows revisited: The Internet as a determinant of transactions in financial assets",
abstract = "We extend Portes et al. (2001) by introducing the Internet as a variable, and we test the model empirically by using cross-country panel data on portfolio flows between the United States and other countries from 1990 to 2008. Asymmetric information accounts for the strong negative relationship between international asset transactions and distance. The Internet plays an important role in mitigating information asymmetry between countries and increases the volume of cross-border portfolio flows.",
keywords = "Cross-border portfolio flows, Gravity equation, Home bias, Information asymmetries, The Internet",
author = "Changkyu Choi and Rhee, {Dong Eun} and Yonghyup Oh",
note = "Funding Information: Distance : the distance between New York and the financial center of a foreign country from Portes, Rey, and Oh (2001) and Shang-JinWei Web site ( http://www.ksg.harvard.edu/people/sjwei ). GDP : World Development Indicator (2009), World Bank. English language dummy : 1 for English speaking countries, 0 otherwise; Australia, Canada, Hong Kong, India, Ireland, Singapore, South Africa, United Kingdom. Financial Skill : 1–7, higher value implies improved financial skill, World Competitiveness Yearbook , IMD. The original Financial Skill data have different scales by periods: the data for 1993–1995 have values from 1 to 10, the data for 1996 have values from 1 to 6, and the data for 1997 to the present have values from 1 to 7. Thus, the data before 1997 are rescaled to have values from 1 to 7. Also, missing values are replaced by nearest figures. Telephone traffic : time of international outgoing telephone traffic of that country from the International Telecommunication Union. Internet users : number of Internet users per 100 people, from the World Development Indicator (2008), World Bank. A.3 ",
year = "2014",
month = jun,
doi = "10.1016/j.econmod.2014.03.027",
language = "English",
volume = "40",
pages = "191--198",
journal = "Economic Modelling",
issn = "0264-9993",
publisher = "Elsevier",
}