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The impact of special-purpose entities on euro area cross-border financial linkages

Author

Listed:
  • Emter, Lorenz
  • Pastoris, Fausto
  • Picón Aguilar, Carmen
  • Schmitz, Martin

Abstract

This box presents newly released data on the activities of special-purpose entities (SPEs) in the external sector of the euro area. It shows that SPEs make a significant contribution to cross-border financial linkages. Overall, SPEs account for around a third of euro area foreign direct investment positions and more than 10% of total euro area cross-border financial linkages. Their importance varies substantially across countries. Although SPEs inflate the gross external positions of the euro area, their impact on the net international investment position is limited. The contribution made by SPEs in the euro area has declined recently from a high level amid national and global initiatives affecting the regulatory and taxation environments for multinational enterprises. JEL Classification: C82, F23, F62

Suggested Citation

  • Emter, Lorenz & Pastoris, Fausto & Picón Aguilar, Carmen & Schmitz, Martin, 2024. "The impact of special-purpose entities on euro area cross-border financial linkages," Economic Bulletin Boxes, European Central Bank, vol. 7.
    • Handle: RePEc:ecb:ecbbox:2024:0007:3
    Note: 791581
    as

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    More about this item

    Keywords

    financial globalisation; foreign direct investment; Special-purpose entities;
    All these keywords.

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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