IMF Working Papers

International Financial Integration

By Philip R. Lane, Gian M Milesi-Ferretti

April 1, 2003

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Philip R. Lane, and Gian M Milesi-Ferretti. International Financial Integration, (USA: International Monetary Fund, 2003) accessed November 23, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: External position, Financial institutions, Financial markets, Foreign assets, Foreign exchange, Foreign liabilities, Real exchange rates, Stock markets, Stocks

Keywords: Asset trade, Bond return, Foreign assets, Foreign liabilities, Global, International investment position, Market value, MSCI return index, MSCI world return index, MSCI world stock return index, Portfolio equity assets, Rates of return, Real exchange rates, Return on assets, Stock market index, Stock market index return, Stock markets, Stocks, U.S. dollar, WP

Publication Details

  • Pages:

    45

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2003/086

  • Stock No:

    WPIEA0862003

  • ISBN:

    9781451850901

  • ISSN:

    1018-5941