Cross-Border Assets Holdings, Equity Securities, and Debt Securities between Gulf Cooperation Council (GCC) and Organization for Economic Co-Operation and Development (OECD)

This paper investigates the trends of asset holdings across borders to GCC financial markets through panel data and compares findings with those acquired for OECD countries. A gravity model was set on bilateral gross cross-border investment flows between countries host 2002 2019. Three dependent variables were used; aggregate equity securities debt securities, securities. Data obtained from International Monetary Fund's (IMF) coordinated Portfolio Investment Survey (CIPS) converted into real terms using GDP deflator. The World Bank (2014) Development Indicators Database (WDI) provided deflators. results indicate that source economies' trade, per capita, population are always positive significant determinants linkages. Geographical proximity (Distance) is found exert a influence assets so investors may seek diversify their portfolios prefer invest outside region.