VoxEU Column
by Fernando Broner, Sergio L. Schmukler & Goetz von Peter
The countries of the Global South are becoming increasingly important actors in the global financial economy. This column uses a comprehensive new bilateral dataset on cross-border bank loans and deposits, portfolio investment, foreign direct investment, and international reserves, covering the period from 2001 to 2018, to show that investments involving the South, and especially those within the South, have grown faster than those within the North. Further, they show that these trends are common across South subregions and are not driven by faster GDP growth in the South.
Links:
VoxEU Column – The growth of the South in global finance: New bilateral data and stylised facts