Working Paper: CEPR ID: DP8173
Authors: Gian Maria Milesi-Ferretti; Francesco Strobbe; Natalia Tamirisa
Abstract: We present a novel and comprehensive dataset of bilateral gross and net external positions in various financial instruments for the main advanced and emerging economies and regions, designed to improve our understanding of cross-border financial linkages. The data show no strong correspondence between country or region pairs with the largest gross versus net external positions, and the importance of international financial centers, including offshore centers, in intermediating financial flows. We also highlight some important data gaps in completing a network of cross-border holdings, related to the limited available information on the size and geographical pattern of external claims and liabilities of offshore centers, oil exporters, and other mostly emerging markets.
Keywords: capital flows; global imbalances; international financial integration
JEL Codes: F31; F32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Increased international financial integration (F30) | Increased global imbalances (F65) |
| Increased international financial integration (F30) | Explosion in cross-border capital flows (F65) |
| Concentration of overseas holdings of U.S. toxic assets in advanced economies (F65) | Exacerbation of initial financial crisis (F65) |
| Structure of financial linkages (F65) | Severity of financial crises (G01) |