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The pursuit of nationalized property
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ISBN: 9024731305 9789024731305 Year: 1986 Publisher: Dordrecht Nijhoff


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Global Financial Shocks and Foreign Asset Repatriation : Do Local Investors Play a Stabilizing Role?
Authors: --- --- ---
ISBN: 1484361857 1484361458 1484362020 Year: 2014 Publisher: Washington, D.C. : International Monetary Fund,

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Abstract

We study the dynamic response of gross capital flows in emerging market economies to different global financial shocks, using a panel vector-autoregressive (PVAR) setting. Our focus lies primarily on the potentially stabilizing role played by domestic investors in offsetting the response of foreign investors to global shocks. We find evidence of such role, but its existence and magnitude depend on the nature of the shock. Local investors play a meaningful stabilizing role in the face of global uncertainty shocks, as well as shocks to long-term U.S. interest rates. However, while in the former case, sizeable asset repatriation largely offsets the retrenchment of non-residents, in the latter case the extent of the offsetting is much more limited. Meanwhile, residents and non-resident behave alike in response to short-term U.S. interest rate shocks, pulling capital away from emerging markets, although magnitudes are not economically significant. The results shed light on the potential impact of the Fed’s QE tapering on emerging market economies.


Book
The External Wealth of Nations Mark II : Revised and Extended Estimates of Foreign Assets and Liabilities, 1970–2004
Authors: --- ---
ISBN: 1451863292 1462351832 1451908652 9786613829979 1452739056 1283517523 Year: 2006 Publisher: Washington, D.C. : International Monetary Fund,

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Abstract

We construct estimates of external assets and liabilities for 145 countries for the period 1970-2004. We describe our estimation methods and present key features of the data at the country and the global level. We focus on trends in net and gross external positions, and the composition of international portfolios, distinguishing between foreign direct investment, portfolio equity investment, official reserves, and external debt. We document the increasing importance of equity financing and the improvement in the external position for emerging markets, and the differing pace of financial integration between advanced and developing economies. We also show the existence of a global discrepancy between estimated foreign assets and liabilities, and identify the asset categories that account for this discrepancy.

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