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

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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.

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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.
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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.
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International Financial Integration

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