International Investment Patterns

By Philip R. Lane, Gian M Milesi-Ferretti

July 1, 2004

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Format: Chicago

Philip R. Lane, and Gian M Milesi-Ferretti. International Investment Patterns, (USA: International Monetary Fund, 2004) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper provides a systematic analysis of bilateral, source and host factors driving portfolio equity investment across countries, using newly-released data on international equity holdings at the end of 2001. It develops a model that links bilateral equity holdings to bilateral trade in goods and services and finds that the data strongly support such a correlation. Larger bilateral positions are also associated with proxies for informational proximity. It further documents that the scale of aggregate foreign equity asset and liability holdings is larger for richer countries and countries with more developed stock markets.

Subject: International investment position, Market capitalization, Portfolio investment, Stock markets, Stocks

Keywords: Dependent variable, Equity holding, Equity investment, Market cap, WP

Publication Details

Pages:

45
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2004/134
Stock No:

WPIEA1342004
ISBN:

9781451855630
ISSN:

1018-5941

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