Bilateral International Investments: The Big Sur?

Goetz von Peter (), Tatiana Didier (), Sergio Schmukler and Fernando Broner

No 1226, Working Papers from Barcelona School of Economics

Abstract: This paper presents novel stylized facts about the rise of the South in global finance using country-to-country data. To do so, the paper assembles comprehensive bilateral data on cross-border bank loans and deposits, portfolio investment, foreign direct investment, and international reserves from 2001 to 2018. The main findings are that investments involving the South, and especially within the South, have grown faster than those within the North. By 2018, South-to-South investments accounted for 8% of total international investments, while investments between the South and the North accounted for an additional 26%. The fastest growth occurred in portfolio investment and international reserves, whereas the slowest growth was in banking. These trends are not driven by China, any particular South region, or offshore financial centers. South-to-South investments grew the fastest even after controlling for regional GDP growth. The extensive margin played a significant role in the growth of investments within the South.

Keywords: Foreign Direct Investment; International Capital Flows; international financial integration; emerging economies; international banking; portfolio investment (search for similar items in EconPapers)
JEL-codes: F21 F36 G15 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-ifn and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Bilateral international investments: The big sur? (2023)
Working Paper: BILATERAL INTERNATIONAL INVESTMENTS:THE BIG SUR? (2023)
Working Paper: Bilateral international investments: The big sur? (2023)
Working Paper: Bilateral International Investments: The Big Sur? (2022)
Working Paper: Bilateral International Investments: the Big Sur? (2020)
Working Paper: Bilateral International Investments: The Big Sur ? (2020)
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