ERIA Lunch time Seminar was held on January 31, 2011 at ERIA annex office. The speaker was Prof. Hyun-Hoon Lee from Kangwon National University.

The topic is from his recent published paper titled "Cross-Border Financial Asset Holdings among East Asian Countries : An Empirical Investigation" co-authored with Dr. Hyeon-seung HUH, Yonsei University and Dr. Donghyun PARK, Asian Development Bank.

The objective of their study is to empirically evaluate the degree of linkages among East Asian equity and bond markets using a theory-based financial gravity model. Prof. Lee explained their findings that intra-regional trade linkages promote intra-East Asian financial asset holdings of East Asian countries. In addition, he pointed out that a clear positive relationship between destination-country risk in particular political risk and capital flows are found in the case of analysis on the impact of country-specific risks on investment.

Following his presentation, the floor was opened for the discussion. Questions regarding terminologies, estimation specification, empirical method as well as way of interpretations of results were raised by participants.