International Financial Integration

Philip Lane and Gian Maria Milesi-Ferretti ()

No 2003/086, IMF Working Papers from International Monetary Fund

Abstract: In recent decades, the foreign assets and liabilities of advanced economies have grown rapidly relative to GDP, with the increase in gross cross-holdings far exceeding changes in the size of net positions. Moreover, the portfolio equity and FDI categories have grown in importance relative to international debt stocks. This paper describes the broad trends in international financial integration for a sample of industrial countries and seeks to explain the cross-country and time-series variation in the size of international balance sheets. It also examines the behavior of the rates of return on foreign assets and liabilities, relating them to "market" returns.

Keywords: WP; MSCI world return index; U.S. dollar; market value; stock market index; International investment position; rates of return; portfolio equity assets; bond return; MSCI return index; asset trade; stock market index return; MSCI world stock return index; return on assets; Foreign assets; Stocks; Stock markets; Foreign liabilities; Real exchange rates; Global (search for similar items in EconPapers)
Pages: 45
Date: 2003-04-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (237)

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Related works:
Working Paper: International Financial Integration (2003)
Working Paper: International Financial Integration* (2003)
Working Paper: International Financial Integration (2003)
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