Chapter 4

Bilateral Financial Links

F. Sá

University of Cambridge, Cambridge, UK

Outline

Introduction

Bilateral Data on External Assets and Liabilities

Main International Data Sources

Foreign Direct Investment

Portfolio Equity and Portfolio Debt Securities

Foreign Exchange Reserves

Other Data Sources

Euro Area Accounts

Individual Country Data Sources

Custodial Center Bias

What Explains Bilateral External Financial Linkages?

Theoretical Foundation for Gravity Models in Goods Trade

Theoretical Foundation for Gravity Models in Cross-Border Asset Trade

Information Asymmetries, Familiarity Effects, and Trust

Stylized Facts

Data

Network of Financial Linkages

Undirected Network

Directed Network

Comparison with the Trade Network

Cross-Border Financial Links ...

Get The Evidence and Impact of Financial Globalization now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial