## International Investment Patterns

_IMF Working Papers, July 1, 2004_

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**Canonical URL:** [International Investment Patterns](https://www.imf.org/en/publications/wp/issues/2016/12/30/international-investment-patterns-17506)

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## Bibliographic details
- Authors: Philip R. Lane, Gian M Milesi-Ferretti
- Published: July 1, 2004
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451855630.001

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### 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.
- The paper documents that the scale of aggregate foreign equity asset and liability holdings is larger for richer countries and countries with more developed stock markets.

### Model and Data
- Uses newly-released data on international equity holdings at the end of 2001.
- Develops a model linking bilateral equity holdings to bilateral trade in goods and services.
- Empirical results: the data strongly support a correlation between bilateral equity holdings and bilateral trade in goods and services.
- Larger bilateral positions correlate with proxies for informational proximity.

### Cross-country Patterns and Key Statistics
- Aggregate foreign equity asset and liability holdings are larger for:
  - richer countries
  - countries with more developed stock markets
- Publication metadata included on the page (for reference within the page content):
  - By Philip R. Lane, Gian M Milesi-Ferretti
  - July 1, 2004
  - Pages: 45
  - Volume: 2004
  - Issue: 134
  - Series: Working Paper No. 2004/134
  - DOI: https://doi.org/10.5089/9781451855630.001
  - Stock No: WPIEA1342004
  - ISBN: 9781451855630
  - ISSN: 1018-5941

### Research Purpose and Scope
- Purpose: to analyze factors driving portfolio equity investment across countries at the bilateral level.
- Scope: bilateral, source, and host factors; informational proximity; relationship with bilateral trade in goods and services; aggregate patterns by country wealth and stock market development.

*Source: International Investment Patterns, IMF Working Paper No. 2004/134.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/international-investment-patterns-17506_