Comparative Analysis of Private Equity Investments in Europe and the Asia-Pacific Region

Abstract

The article presents a comparative analysis of private equity (PE) investments in 13 Asian-Pacific and 19 European economies over the period of twenty-nine years from 1990 to 2017 using the fixed effects estimation technique. Results show that ICT, investment profile, human capital, and market capitalization are the strong positive determinants of PE in all the samples. For the rest of the variables, there are significant differences between the two regions. Population growth and real interest rate exert significant influence in the overall samples as well as in the Asia-Pacific region while real exchange rate, unemployment, and tax burden play significant role in the Europe. The article contributes to the PE literature by filling the regional gap and offering new insights into the previously contested results.