Discussion paper

DP18480 Global Capital Allocation

We survey the literature on global capital allocation. We begin by reviewing the rise of cross-border investment, the shift towards portfolio investment, and the literature focusing on aggregate patterns in multilateral and bilateral positions. We then turn to the recent literature that uses micro-data to document patterns in global capital allocations. We focus on the importance of the currency of denomination of assets in international portfolios and the role that tax havens and offshore financial centers play in intermediating global capital. We conclude with directions for future research in this area.


Florez-Orrego, S, M Maggiori, J Schreger, Z Sun and S Tinda (2023), ‘DP18480 Global Capital Allocation‘, CEPR Discussion Paper No. 18480. CEPR Press, Paris & London. https://cepr.org/publications/dp18480