DP2583 External Capital Structure: Theory and Evidence

Author(s): Philip R. Lane, Gian Maria Milesi-Ferretti
Publication Date: October 2000
Keyword(s): External Debt, Foreign Direct Investment, Net Foreign Assets, Portfolio Equity
JEL(s): F21, F34
Programme Areas: International Macroeconomics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=2583

Recent years have witnessed a change in the composition of capital flows to developing countries, and FDI and equity flows have been playing an increasing role. In this paper we discuss the challenges for international macroeconomics that these developments pose and characterize stylized facts associated with the structure of external liabilities in developing countries, focusing in particular on FDI and equity stocks.