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A consolidated-by-nationality approach to Irish foreign exposure

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  • André Sanchez Pacheco

Abstract

How exposed is Ireland to foreign shocks? Relying on residence-based measures of foreign holdings to answer this question can be challenging. These statistics are obscured by the vast presence of Special Purpose Entities in the country. Alternatively, I construct an estimate of the Irish consolidated-by-nationality foreign balance sheet for the period between 2011 and 2019 based on a novel methodology that builds on firm-level data. I find that Ireland's consolidated foreign balance sheet is on average 46.7% smaller relative to its residence-based analogue. I interpret this result as an indication that Ireland is significantly less exposed to foreign shocks than what is suggested by residence-based statistics.

Suggested Citation

  • André Sanchez Pacheco, 2022. "A consolidated-by-nationality approach to Irish foreign exposure," International Economics, CEPII research center, issue 170, pages 235-247.
    • Handle: RePEc:cii:cepiie:2022-q2-170-15
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    1. A Consolidated-by-Nationality Approach to Irish Foreign Exposure
      by The Irish Economy in The Irish Economy on 2021-12-07 13:45:38

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    1. Andre Sanchez Pacheco, 2023. "Consolidated Foreign Wealth of Nations: Nationality-based measures of international exposure," Trinity Economics Papers tep0623, Trinity College Dublin, Department of Economics.
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    3. Beck, Roland & Coppola, Antonio & Lewis, Angus & Maggiori, Matteo & Schmitz, Martin & Schreger, Jesse, 2023. "The Geography of Capital Allocation in the Euro Area," SocArXiv rzwd2, Center for Open Science.

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    More about this item

    Keywords

    International financial integration; Financial globalisation; Consolidated-by-nationality statistics;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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