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Global Capital Allocation

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

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

  • Florez-Orrego, Sergio & Maggiori, Matteo & Schreger, Jesse & Sun, Ziwen & Tinda, Serdil, 2023. "Global Capital Allocation," CEPR Discussion Papers 18480, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18480
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    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).
    4. Patrick McGuire & Goetz von Peter & Sonya Zhu, 2024. "International finance through the lens of BIS statistics: residence vs nationality," BIS Quarterly Review, Bank for International Settlements, March.

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    More about this item

    Keywords

    Tax havens/financial centers; Us dollar; International investment positions;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance

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