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European Financial Linkages

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  • International Monetary Fund
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    Abstract

    We document external investment positions among European Union countries at the start of the financial crisis through the creation of a new database comprising bilateral external financial asset and liabilities, excluding reserve assets and derivatives. While there are some gaps in the data, the overall coverage of reported bilateral net international investment positions (IIPs) appears satisfactory. The dataset provides a richer picture of financial linkages, enabling us to map the financing of Euro area imbalances. Creditor and debtor positions vis-Ã -vis the rest of the EU have tended to increase between 2000 and 2008, with capital flowing largely from wealthier to catching-up economies. This has in particular resulted in an increased interdependency among Euro Area economies.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 10/295.

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    Length: 60
    Date of creation: 01 Dec 2010
    Date of revision:
    Handle: RePEc:imf:imfwpa:10/295

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    Related research

    Keywords: Data collection; Databases; foreign assets; net foreign assets; foreign asset; foreign asset positions; direct investment; fdi; net foreign asset; net foreign asset positions; financial integration; bilateral trade; portfolio investment; international investment; foreign direct investment; foreign exchange; capital flows; international lending; exchange rates; global financing; international settlements; global financial system; foreign banks; direct investment statistics; global financial stability; trade relations; european integration; international finance; economic integration; trade partners; global financial intermediary; direct investment survey; foreign exchange reserves; globalization; industrial countries; bilateral investment; foreign affiliates;

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    Cited by:
    1. HIRATA Hideaki & Ayhan KOSE & Christopher OTROK, 2013. "Regionalization vs. Globalization," Discussion papers 13004, Research Institute of Economy, Trade and Industry (RIETI).
    2. Fabian Lindner, 2013. "Banken treiben Eurokrise," IMK Report 82-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. Alexander Herzog-Stein & Fabian Lindner & Rudolf Zwiener, 2013. "Nur das Angebot zählt?," IMK Report 87-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    4. Coates, Dermot & Everett, Mary, 2013. "Profiling the Cross-Border Funding of the Irish Banking System," Economic Letters 04/EL/13, Central Bank of Ireland.
    5. Emilio Espino & Julian Kozlowski & Juan M. Sánchez, 2013. "Regionalization vs. globalization," Working Papers 2013-002, Federal Reserve Bank of St. Louis.

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