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Global Capital Allocation

Author

Listed:
  • Sergio Florez-Orrego

    (Leonard N. Stern School of Business, New York University, New York, NY, USA)

  • Matteo Maggiori

    (Graduate School of Business, Stanford University, Stanford, California, USA)

  • Jesse Schreger

    (Economics Division, Columbia Business School, Columbia University, New York, NY, USA)

  • Ziwen Sun

    (Graduate School of Business, Stanford University, Stanford, California, USA)

  • Serdil Tinda

    (Graduate School of Business, Stanford University, Stanford, California, USA)

Abstract

We survey the literature on global capital allocation. We begin by reviewing the rise of cross-border investment, the shift toward portfolio investment, and the literature focusing on aggregate patterns in multilateral and bilateral positions. We then turn to the recent literature that uses micro data to document patterns in global capital allocations. We focus on the importance of the currency of denomination of assets in international portfolios and the role that tax havens and offshore financial centers play in intermediating global capital. We conclude with directions for future research in this area.

Suggested Citation

  • Sergio Florez-Orrego & Matteo Maggiori & Jesse Schreger & Ziwen Sun & Serdil Tinda, 2024. "Global Capital Allocation," Annual Review of Economics, Annual Reviews, vol. 16(1), pages 623-653, August.
    • Handle: RePEc:anr:reveco:v:16:y:2024:p:623-53
    DOI: 10.1146/annurev-economics-081623-020427
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    Citations

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    Cited by:

    1. Matteo Maggiori & Brent Neiman & Jesse Schreger, 2025. "Corporate Debt Structure with Home and International Currency Bias," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 73(2), pages 433-456, June.
    2. Kimiko Terai, 2025. "The Sovereign Bond Issuance and Tax Competition for Portfolio Investment," Keio-IES Discussion Paper Series DP2025-024, Institute for Economics Studies, Keio University.
    3. Kaufmann, Christoph & Leyva, Jaime & Storz, Manuela, 2024. "Insurance corporations’ balance sheets, financial stability and monetary policy," Working Paper Series 2892, European Central Bank.
    4. Swapan-Kumar Pradhan & Eswar Prasad & Előd Takáts & Judit Temesvary, 2026. "Dollarisation waves: new evidence from a comprehensive international bond database," BIS Papers, Bank for International Settlements, number 165.
    5. Holland, Sara B. & Sarkissian, Sergei & Schill, Michael J. & Warnock, Francis E., 2024. "Nonlinearities and a pecking order in cross-border investment," Journal of Banking & Finance, Elsevier, vol. 166(C).
    6. Patrick McGuire & Goetz Peter & Sonya Zhu, 2025. "International Finance Through the Lens of BIS Statistics: Residence vs Nationality," Springer Books, in: Ursula Schipper & Robert Kirchner & Jens Walter (ed.), Measuring International Economics, pages 189-206, Springer.
    7. Allen, Cían & Juvenal, Luciana, 2025. "The role of currencies in external balance sheets," Journal of International Economics, Elsevier, vol. 157(C).
    8. Dos Santos, Amanda, 2026. "The Development of Domestic Bond Markets," SocArXiv 9he6d_v1, Center for Open Science.
    9. Kimiko Terai, 2025. "The Sovereign Bond Issuance and Tax Competition for Portfolio Investment: A Political Economy Approach," Keio-IES Discussion Paper Series DP2025-016, Institute for Economics Studies, Keio University.
    10. Kubitza, Christian & Sigaux, Jean-David & Vandeweyer, Quentin, 2025. "The implications of CIP deviations for international capital flows," Working Paper Series 3017, European Central Bank.

    More about this item

    Keywords

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    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls
    • F3 - International Economics - - International Finance
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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