Consolidated foreign wealth of nations: Nationality-based measures of international exposure

Andre Sanchez Pacheco

UNCTAD Transnational Corporations Journal

Abstract: This study presents novel estimates of foreign holdings using a consolidated-by-nationality approach for a sample of 14 developed countries over multiple years. This approach provides an alternative for policymakers and researchers to analyse international exposure that complements the existing approach based on residence-based data. Two main advantages of the nationality-based approach are that it looks through corporate structures of multinational enterprises and considers local positions. The resulting novel data show that aggregate international financial integration is larger than residence-based data indicate for the sample. These data are used to analyse (i) profit-shifting activities and (ii) spillovers from United States monetary policy shocks. This paper presents 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. It also shows that a tightening in United States monetary policy is associated with a decline in foreign asset holdings by non-financial multinational enterprises using the consolidated-by-nationality approach. These findings underscore the relevance of using the consolidated-by-nationality approach to evaluate policy-relevant questions.

Date: 2024-04-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://unctad.org/system/files/official-document/diaeia2024d1a2_en.pdf?repec (application/pdf)

Related works:
Working Paper: Consolidated Foreign Wealth of Nations: Nationality-based measures of international exposure (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:unc:tncjou:120

Access Statistics for this article

UNCTAD Transnational Corporations Journal is currently edited by Kumi Endo

More articles in UNCTAD Transnational Corporations Journal from United Nations Conference on Trade and Development Contact information at EDIRC.
Bibliographic data for series maintained by Kumi Endo ().