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Global Capital Allocation

Author

Listed:
  • Sergio Florez-Orrego
  • Matteo Maggiori
  • Jesse Schreger
  • Ziwen Sun
  • Serdil Tinda

Abstract

We survey the literature on global capital allocation. We begin by reviewing the rise of cross-border investment, the shift towards 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, 2023. "Global Capital Allocation," NBER Working Papers 31599, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31599
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    2. Kaufmann, Christoph & Leyva, Jaime & Storz, Manuela, 2024. "Insurance corporations’ balance sheets, financial stability and monetary policy," Working Paper Series 2892, European Central Bank.
    3. 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).

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    JEL classification:

    • F0 - International Economics - - General
    • F3 - International Economics - - International Finance
    • F30 - International Economics - - International Finance - - - General

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