SEACEN-ASB Webinar: The True Nature of Capital Flows

Event Code :WB12021
Venue :Online Webinar
Host Name :The SEACEN Centre
Coordinator :
s
Date From :15 Jan 2021
Date To :15 Jan 2021

Descriptions


SEACEN-ASB Webinar: The True Nature of Capital Flows -the Global Capital Allocation Project


Coppola et al. (2020) provide a more accurate picture of the true destinations of foreign portfolio allocations between countries that go through financial centres before they arrive at their ultimate destination. The Coppola et al. (2020) study contains a number of important findings:
• investment from advanced economies to emerging market economies have been much larger than has been reported ‒ meaning that some exposures are much bigger than they appear on the basis of official data;
• the amount of corporate bonds issued by firms in emerging markets has been more significant than realised; and
• Chinese firms raised substantial capital from foreigners via affiliates in tax havens, leading to an understatement of China’s foreign liabilities
• some ‘foreign’ investment represents domestic investment routed through a tax haven


Overall, the US, Eurozone, and some other developed economies have larger stakes in emerging markets than we thought.

Please join us at 9am KL time on Friday, 15 January 2021, for a presentation by Matteo Maggiori (Stanford Graduate School of Business), one of the authors of the Coppola et al. (2020) study, on the Global Capital Allocation Project, which he is spearheading.

In case of interest, we also direct you to Suara SEACEN's blogpost from 25 March 2020 as well as The SEACEN Centre’s podcast with Matteo from 15 April 2020.

 

Matteo is an Associate Professor of Finance at the Stanford Graduate School of Business. His research focuses on international macroeconomics and finance. His research topics have included the analysis of exchange rate dynamics, global capital flows, the international financial system, the role of the dollar as a reserve currency, tax havens, bubbles, expectations and portfolio investment and very long-run discount rates. He is a co-founder and director of the Global Capital Allocation Project (GCAP), which aims is to shed light on how capital moves around the world to improve international economic policy. The GCAP has helped pick apart the tangled network of cross-border capital flows.