The External Wealth of Nations Mark Ii: Revised and Extended Estimates of Foreign Assets and Liabilities, 1970-2004

By Philip R. Lane, G. Milesi-Ferretti. Social Science Research Network, 2006

3,415 citations recorded by the source corpus.

We construct estimates of external assets and liabilities for over 140 countries over the period 1970-2004. We describe our estimation methods and present some key features of the data, both at the country and at the global level. We focus in particular on trends in net and gross external positions, as well as on the composition of international portfolios, distinguishing between foreign direct investment, portfolio equity investment, foreign exchange reserves, and external debt. We also document the existence of a 'world net foreign asset discrepancy' (the stock counterpart to the world current account discrepancy) and identify the asset categories that account for this discrepancy.

Subfields: Strategy and Management

View Paper: https://www.semanticscholar.org/paper/c8d6dc1c255eb585780c9db67ceeb940a2c716df

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In Strategy and Management

1. M. Obstfeld
2. Shang-jin Wei
3. Hiro Ito
4. Laura Alfaro
5. G. Zucman
6. M. Chinn
7. Jean Imbs
8. Christopher Hajzler

Citations in the corpus

• Sovereign-Wealth Funds: Assuaging the Exaggerated Anguish about the New Global Financial Players (2008, neutral): “the rate of increase of global cross-border investment was twice that of rate of growth of multilateral trade in goods and services, which in turn exceeded the rate of global GDP growth (Lane and Milesi-Ferretti, 2006).”
• The KOF Globalisation Index – revisited (2019, positive): “Following Lane and Milesi-Ferretti (2007, 2018), we include variables on foreign direct investments, portfolio investments, international debt and international reserves (excluding gold).”
• Global Current Account Imbalances: American Fiscal Policy versus East Asian Savings (2008, neutral): “databases; LM: Lane and Milesi-Ferretti (2006); Polity IV: Polity IV project (Marshall and Jaggers, 2002,”
• Real Exchange Rates and Fundamentals: A Cross-Country Perspective (2008, positive): “The net foreign assets measure employed is a recent revision of the data on countries’ net external position (Lane and Milesi-Ferretti (2007)).”
• Sustainability and the measurement of wealth (2012, neutral): “A recent paper by Lane and MilesiFerretti (2007) provides estimates of net holdings of international assets from balance of payments and other IMF data.”
• Rising Income Inequality: Technology, or Trade and Financial Globalization? (2008, positive): “As a consequence of these challenges an alternative literature has emerged arguing that the Heckscher-Ohlin model is inconsistent with recent inequality experience around the world, not just related to the fact that inequality increased in developing countries, but also along multiple other dimensio”
• Surfing the Waves of Globalization: Asia and Financial Globalization in the Context of the Trilemma (2010, neutral): “…on capital account transactions, and the requirement of the surrender of export proceeds.47 Since KAOPEN is based upon reported restrictions, it is necessarily a de jure index of capital account openness (in contrast to de facto measures such as those in Lane and Milesi-Ferretti (2006)).”
• Government Debt and Economic Growth (2013, background): “The latter is proxy by equity liability over GDP from Lane and Milesi-Ferretti (2001, 2007).”