The External Wealth of Nations Measures of Foreign Assets and Liabilities for Industrial and Developing Countries

By Philip R. Lane, G. Milesi-Ferretti. Social Science Research Network, 2001

826 citations recorded by the source corpus.

Abstract Although capital flows are closely monitored, surprisingly little is known about the accumulated stocks of foreign assets and liabilities held by various countries, especially in the developing world. This paper constructs estimates of foreign assets and liabilities and their equity and debt subcomponents for a sample of 67 industrial and developing countries. It characterizes the stylized facts of international balance sheets and asks whether there are trends in net foreign asset positions and shifts in debt–equity ratios over time. Finally, it explores the sensitivity of estimated stock positions to the treatment of valuation effects not captured in balance of payments data.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/89a00ef5041231a8e9533d3f7ea6acd2ee51caf0

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Citations in the corpus

Financial Openness and Growth: Short-Run Gain, Long-Run Pain? (2007, background): “However, the available dataset on net foreign assets by Lane and Milesi-Ferretti (2001) does not include several of the countries and periods covered by the paper.”
Growth Volatility and Financial Liberalization (2005, background): “Examples of papers that use de facto measures of liberalization are Bekaert and Harvey (2000a,b), Lane and Milesi-Ferretti (2001) and Prasad, Rogoff, Wei, and Kose (2004).”
The External Wealth of Nations Mark Ii: Revised and Extended Estimates of Foreign Assets and Liabilities, 1970-2004 (2006, methodology): “As in Lane and Milesi-Ferretti (2001a), our initial values are based on estimates by Sinn (1994) or, for several emerging markets, derived from OECD (1972), complemented with cumulative flows between 1967 and 1970.”
Solving for Country Portfolios in Open Economy Macro Models (2007, background): “1 Lane and Milesi-Ferretti (2001) emphasise the quantitative importance of valuation effects on external assets and liabilities. See also subsequent work by Ghironi et al. (2005), Gourinchas and Rey (2005), and Tille (2003, 2004).”
SOVEREIGNS, UPSTREAM CAPITAL FLOWS, AND GLOBAL IMBALANCES: Sovereigns, Upstream Capital Flows, and Global Imbalances (2014, methodology): “Nevertheless, there are several issues behind the compilation of the BOP statistics, as discussed in greater detail by Lane and Milesi-Ferretti (2001) and Alfaro, Kalemli-Ozcan and Volosovych (2007).”
Financial Globalisation and the Crisis (2012, neutral): “The sum of foreign assets and foreign liabilities (expressed as a ratio to GDP and termed the IFI ratio) is a useful measure of the de facto scale of cross-border financial integration (Lane and Milesi-Ferretti 2001, 2007).”
Trade and Business Cycle Synchronization in OECD Countries: A Re-Examination (2008, neutral): “The capital account restriction variable is based on information provided by Lane and Milesi-Ferretti (2001) and updated using the IMF publication Exchange arrangements and exchange restrictions, which gives an overview of capital and current account restrictions for each country.”
Financial Development in Latin America and the Caribbean : The Road Ahead [El desarrollo financiero en América Latina y el Caribe : el camino por delante] (2011, methodology): “The financial diversification dimension of financial globalization was measured in this study based on the widely used de facto measures compiled by Lane and Milesi-Ferretti (2007), which are based on stocks (the stock of foreign assets and liabilities) as well as”