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International Financial Integration

Author

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  • Milesi-Ferretti, Gian Maria
  • Lane, Philip

Abstract

In recent decades, foreign assets and liabilities in advanced countries have grown rapidly relative to GDP, with the increase in gross cross-holdings far exceeding the size of net positions. Moreover, the portfolio equity and FDI categories have grown in importance relative to international debt stocks. In this Paper, we describe the broad trends in international financial integration for a sample of industrial countries, and seek to explain the cross-country and time-series variation in the size of international balance sheets. We also examine the behaviour of the rates of return on foreign assets and liabilities, relating them to ?market? returns.

Suggested Citation

  • Milesi-Ferretti, Gian Maria & Lane, Philip, 2003. "International Financial Integration," CEPR Discussion Papers 3769, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:3769
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    More about this item

    Keywords

    International financial integration; Capital flows; Rates of return;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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