scispace - formally typeset
Open AccessJournal ArticleDOI

The External Wealth of Nations Mark Ii: Revised and Extended Estimates of Foreign Assets and Liabilities, 1970-2004

Reads0
Chats0
TLDR
In this article, the authors construct estimates of external assets and liabilities for 145 countries for the period 1970-2004, focusing on trends in net and gross external positions, and the composition of international portfolios.
Abstract
We construct estimates of external assets and liabilities for 145 countries for the period 1970-2004. We describe our estimation methods and present key features of the data at the country and the global level. We focus on trends in net and gross external positions, and the composition of international portfolios, distinguishing between foreign direct investment, portfolio equity investment, official reserves, and external debt. We document the increasing importance of equity financing and the improvement in the external position for emerging markets, and the differing pace of financial integration between advanced and developing economies. We also show the existence of a global discrepancy between estimated foreign assets and liabilities, and identify the asset categories that account for this discrepancy.

read more

Content maybe subject to copyright    Report

Citations
More filters
Posted Content

A Dynamic North-South Model of Demand-Induced Product Cycles

TL;DR: In this article, a dynamic North-South general-equilibrium model where households have non-homothetic preferences is presented, where innovation takes place in a rich North while firms in a poor South imitate products manufactured in North.
Journal ArticleDOI

Remittances Over the Business Cycle: Theory and Evidence

TL;DR: In this article, the authors examined the behavior of remittances over the business cycle and their potential to act as a stabilizer during periods of high business cycle volatility and found that remittance can help support consumption stability.
Journal ArticleDOI

Financial liberalisation, financial development and productivity growth: an overview

TL;DR: In this paper, the authors survey the literature on the effects of finance on productivity growth and find no clear consensus regarding the direct growth contribution of financial liberalization and financial development, and suggest that not any growth channel, but especially productivity-driven impulses are more intensively linked to financial aspects of economic development.
Journal ArticleDOI

The role of financial development in exchange rate regime choices

TL;DR: In this article, the role of financial development in the choice of exchange rate regimes was investigated using a binary choice model, and it was shown that financially less developed countries are more likely to adopt a fixed exchange rate.
Journal ArticleDOI

Aging and Pension Reform: Extending the Retirement Age and Human Capital Formation

TL;DR: In this paper, the authors examined three important adjustments channels to dampen the detrimental effects of ageing: investing abroad, endogenous human capital formation and increasing the retirement age, and found that the latter has a relatively mild effect.
References
More filters
Posted Content

The External Wealth of NationsMeasures of Foreign Assets and Liabilities for Industrial and Developing Countries

Abstract: Capital flows are closely monitored, but surprisingly little is known about the stocks of external assets and liabilities held by countries, especially in the developing world. This paper constructs estimates of foreign assets and liabilities and their equity and debt subcomponents for 66 industrial and developing countries for the period 1970-97. It explores the sensitivity of estimates of stock positions to the treatment of valuation effects not captured in balance of payments data. Finally, it characterizes the stylized facts of estimated stocks and asks whether there are trends in net foreign asset positions and differences in debt-equity ratios across countries.
Posted Content

THE EXTERNAL WEALTH OF NATIONS: Measures of Foreign Assets and Liabilities For Industrial and Developing Countries

TL;DR: In this article, the authors constructed estimates of foreign assets and liabilities and their equity and debt subcomponents for a sample of 67 industrial and developing countries, and explored the sensitivity of estimated stock positions to the treatment of valuation effects not captured in balance of payments data.
ReportDOI

International Financial Adjustment

TL;DR: In this paper, the authors explore the implications of a country's external budget constraint to study the dynamics of net foreign assets and exchange rate movements, and find that deterioration in a country net exports or net foreign asset position relative to their trend have to be matched either by future net export growth (the trade channel) or by future increases in the returns of the net-foreign asset portfolio, a hitherto unexplored valuation channel.
Posted Content

International Institutions for Reducing Global Financial Instability

TL;DR: In this paper, a broad range of plans are considered, including a global lender of last resort facility, an international bankruptcy court, international debt insurance corporation, and unilateral controls on capital flows.
Journal ArticleDOI

International Financial Integration

TL;DR: In this article, the authors describe the broad trends in international financial integration for a sample of industrial countries, and seek to explain the cross-country and time-series variation in the size of international balance sheets.
Related Papers (5)