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Annual Review of Economics

Volume 16, 2024

Global Capital Allocation

Abstract

We survey the literature on global capital allocation. We begin by reviewing the rise of cross-border investment, the shift toward 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.

Keyword(s): global portfolios, home bias, home currency bias, JEL F3, JEL F34, JEL F36, JEL F38, JEL G15, role of the US dollar, tax havens
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2024-08-22
2024-10-12
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Global Capital Allocation
Annual Review of Economics 16, 623 (2024); https://doi.org/10.1146/annurev-economics-081623-020427
/content/journals/10.1146/annurev-economics-081623-020427
/content/journals/10.1146/annurev-economics-081623-020427
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