Push and pull factors combine to capture the time-series variation in equity and bond inflows from the U.S. to another country. The booming economy of the U.S., proxied by the U.S. industrial production, causes decrease on both equity and bond flows to another country. Besides the U.S. industrial production, however, all the other push and pull factors exhibit asymmetrical effects to equity flows and bond flows. The soaring VIX significantly decreases cross-border equity flows, whereas the international bonds remain as safe assets. The hike of U.S. real interest rate causes decline on cross-border bond flows, whereas equity inflows remain intact. The effect of interest rate especially shows time-varying response depending on the maturity type. The global economy and the country-specific economic soundness explain the dynamics of push and pulls for the portfolio flows by the portfolio type: equities and bonds.

Keywords: Equity flows; Bond flows; Push factors; Pull factors; Cross-border investment