Globalization and the Reach of Multinationals Implications for Portfolio Exposures, Capital Flows, and Home Bias
Abstract: The residence-based framework of measuring international exposure is increasingly less informative, as a growing number of firms locate in low-tax jurisdictions and issue securities through offshore subsidiaries. This has clouded the view of capital flows and investor exposures from standard sources such as the IMF Balance of Payments and the Coordinated Portfolio Investment Survey.
Part of Series: FEDS Notes
Publication Date: 2020-12-18