Consolidated Foreign Wealth of Nations: Nationality-based measures of international exposure

Andre Sanchez Pacheco

No tep0623, Economic Papers from Trinity College Dublin, Economics Department

Abstract: This paper presents novel estimates of foreign holdings from a consolidated-by-nationality perspective for a sample of fourteen developed countries over multiple years. It describes the stylized facts that emerge from this new data-set on the international exposure of countries. It shows that aggregate international financial integration is larger from a nationality-based approach relative to the conventional residence-based data. These novel data are used to analyze (1) profit shifting activities and (2) spillovers from U.S. monetary policy shocks. I find evidence suggesting that nationals of relatively high-tax countries may shift assets to low-tax countries in ways not fully captured in residence-based statistics. I also find that a tightening in U.S. monetary policy is associated with a decline in consolidated-by-nationality foreign asset holdings by non-financial multinational enterprises. Such findings highlight the usefulness of this new data-set in international macroeconomics.

Keywords: Internationalfinancialintegration; financialglobalisation; consolidated-by-nationalitystatistics (search for similar items in EconPapers)
JEL-codes: F21 F23 F36 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2023-04
New Economics Papers: this item is included in nep-ifn, nep-int and nep-mon
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Related works:
Journal Article: Consolidated foreign wealth of nations: Nationality-based measures of international exposure (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:tcd:tcduee:tep0623

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