DP7694 Cross-Border Investment in Small International Financial Centers

Author(s):	Philip R. Lane, Gian Maria Milesi-Ferretti
Publication Date:	February 2010
Keyword(s):	Financial centers, foreign assets, portfolio investment
JEL(s):	F31, F32
Programme Areas:	International Macroeconomics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=7694

We document and assess the role of small financial centers in the international financial system using a newly-assembled dataset. We present estimates of the foreign asset and liability positions for a number of the most important small financial centers, and place these into context by calculating the importance of these locations in the global aggregate of cross-border investment positions. We also report data on bilateral cross-border investment patterns, highlighting which countries engage in financial trade with small financial centers.