Finance Seminar: Phong Ngo

10 November, 2017 - 10:30 to 12:00
Joyce Ackroyd (37), Room 430

Using the timing of Dalai Lama visits as a unique source of time-varying geopolitical tensions between China and other countries, we show that in the year following a visit where he meets with the head of state, bank flows from China to that country fall by 12-17%. We find supportive evidence by examining bilateral flows in a broad panel of countries: proxies for geopolitical tensions between countries are associated with declines in bilateral bank flows. The effect operates through state-ownership in the banking sector, which enables government to direct the flow of international capital according to political concerns.

Phong Ngo

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