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Bilateral International Investments: The Big Sur?

Author

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  • Broner, Fernando
  • Didier, Tatiana
  • Schmukler, Sergio L.
  • von Peter, Goetz

Abstract

Using country-to-country data, this paper documents a set of novel stylized facts about the rise of the South in global finance. The paper assembles comprehensive bilateral data on cross-border bank loans and deposits, portfolio investment in debt and equity, foreign direct investment, and international reserves. The main findings are that investments involving the South, and especially within the South, have grown faster than those within the North between 2001 and 2018. By 2018, the South was involved in 34% of total international investments. The largest increases occurred in portfolio investment and international reserves, the smallest in banking. These trends are observed across South regions, are not driven by China, and are reinforced when taking offshore finance into account. South-to-South investments tended to grow the fastest, even after controlling for regional GDP growth. The extensive margin increased significantly within the South, accounting for a sizable share of international investments by 2018

Suggested Citation

  • Broner, Fernando & Didier, Tatiana & Schmukler, Sergio L. & von Peter, Goetz, 2022. "Bilateral International Investments: The Big Sur?," CEPR Discussion Papers 17656, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17656
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    2. Chiappini, Raphaël & Gerard, Enea, 2025. "Environmental regulation and foreign direct investments: evidence from a new measure of environmental stringency," Macroeconomic Dynamics, Cambridge University Press, vol. 29, pages 1-1, January.
    3. Lin, Wenlian & Cao, Jerry & Zhou, Sili & Li, Yong, 2024. "Political affinity, multilateralism, and foreign direct investment worldwide," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 94(C).
    4. Giovanni Donato, 2025. "The Exceptions that Prove the Rule? Revisiting the effectiveness of Capital Controls Under International Investment Agreements," IHEID Working Papers 17-2025, Economics Section, The Graduate Institute of International Studies.
    5. Ilhyock Shim & Torsten Ehlers & Fredy Gamboa & Han Qiu, 2025. "Regional integration amid global fragmentation," BIS Bulletins 102, Bank for International Settlements.
    6. 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.
    7. Nicholas Lynch, 2025. "Breaking Bad: Sanctions and Illicit Economic Activity," Working Papers 202517, Center for Global Policy Analysis, LeBow College of Business, Drexel University.
    8. repec:osf:socarx:5s6n3_v1 is not listed on IDEAS
    9. De Mendonça Acevedo Juan Cruz, 2025. "Diferencias Ideológicas E Integración Regional En América Del Sur," Asociación Argentina de Economía Política: Working Papers 4791, Asociación Argentina de Economía Política.
    10. George Pantelopoulos, 2024. "Can external sustainability be decoupled from the NIIP?," International Economics and Economic Policy, Springer, vol. 21(1), pages 89-116, February.
    11. Sebastian Horn & Carmen M. Reinhart & Christoph Trebesch, 2022. "Hidden Defaults," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 531-535, May.
    12. Pamela Pogliani & Goetz von Peter & Philip Wooldridge, 2022. "The outsize role of cross-border financial centres," BIS Quarterly Review, Bank for International Settlements, June.
    13. Maurice Obstfeld, 2022. "Global Economic Recovery in the Face of COVID-19," Chapters, in: Lili Yan Ing & Dani Rodrik (ed.), New Normal, New Technologies, New Financing, chapter 3, pages 22-37, Economic Research Institute for ASEAN and East Asia (ERIA).
    14. 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.

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    Keywords

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    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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