{"type":"script","doc_desc":{"producers":[{"name":"Jones","abbr":"MRJ","affiliation":"World Bank"},{"name":"Krestel","abbr":"CK","affiliation":"World Bank"}],"prod_date":"2023-07-17","version":"2"},"project_desc":{"title_statement":{"idno":"PP_WLD_2020_PRWP-9501_v01","title":"Reproducibility package for Bilateral International Investments: the Big Sur","identifiers":[{"type":"doi","identifier":"https:\/\/doi.org\/10.60572\/azav-8915"}]},"authoring_entity":[{"name":"Fernando Broner","affiliation":" CREI, Universitat Pompeu Fabra, and Barcelona GSE","email":"fbroner@crei.cat","author_id":[{"type":"ORCID","id":"0000-0002-5507-9823"}]},{"name":"Tatiana Didier","affiliation":"World Bank","email":"tdidier@worldbank.org"},{"name":"Sergio L. Schmukler","affiliation":"World Bank","email":"sschmukler@worldbank.org"},{"name":"Goetz von Peter","affiliation":"Bank for International Settlements","email":"Goetz.von.Peter@bis.org","author_id":[{"type":"ORCID","id":"0000-0002-5657-6506"}]}],"acknowledgment_statement":"We are truly indebted to Facundo Abraham and Paolo Sabella, who helped us put together the paper, as well as to Juan Jos\u00e9 Cortina Lorente, Esteban Espinoza, Julia Gottlieb, Ruth Llovet, and Mat\u00edas Moretti for excellent research assistance at earlier stages of the project. We received very useful comments from Stijn Claessens, Ben Cohen, Augusto de la Torre, Sebastian Horn, Sebnem Kalemli-\u00d6zcan (the Editor), Aart Kraay, Ayhan Kose, Daniel Lederman, Bob McCauley, Gian Maria Milesi-Ferretti, Carmen Reinhart, Luis Eduardo San Martin, Luis Serv\u00e9n, two anonymous referees, and participants at presentations held at the Armenian Economic Association Annual Meetings, Asia School of Business, ASSA Annual Meetings, Banca D\u2019Italia, Bank for International Settlements, CEPR Paris Symposium, International Monetary Fund, Paris School of Economics, University of Southern California, and World Bank. We thank Anton Park for helpful edits.","abstract":"This paper presents novel stylized facts about the rise of the South in global finance using country-to-country data. To do so, the paper assembles comprehensive bilateral data on cross-border bank loans and deposits, portfolio investment, foreign direct investment, and international reserves from 2001 to 2018. The main findings are that investments involving the South, and especially within the South, have grown faster than those within the North. By 2018, South-to-South investments accounted for 8% of total international investments, while investments between the South and the North accounted for an additional 26%. The fastest growth occurred in portfolio investment and international reserves, whereas the slowest growth was in banking. These trends are not driven by China, any particular South region, or offshore financial centers. South-to-South investments grew the fastest even after controlling for regional GDP growth. The extensive margin played a significant role in the growth of investments within the South.","geographic_units":[{"name":"World","code":"WLD","type":"reg"}],"keywords":[{"name":" International Capital Flows"},{"name":"Emerging Economies"},{"name":"Portfolio Investment"},{"name":"International Financial Integration"},{"name":"Foreign Direct Investment"}],"topics":[{"id":"F21","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php","name":"International Investment \u2022 Long-Term Capital Movements","vocabulary":"JEL Classifications"},{"id":"F36","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php","name":"Financial Aspects of Economic Integration","vocabulary":"JEL Classifications"},{"id":"G15","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php","name":"International Financial Markets","vocabulary":"JEL Classifications"}],"methods":[{"name":"Panel regressions","note":"We estimate panel regressions of the evolution of international investment over time to test more\nformally whether the value of investment involving South countries grew faster than that involving\nNorth countries.\nwe estimate panel regressions of the evolution of international links over time to\nexplore more formally whether the growth in connectedness in the South was indeed faster than that\nin the North. "},{"name":"OLS","note":"log of the value of investment (unscaled) as the dependent variable."},{"name":"Poisson pseudo maximum likelihood (PPML)","note":"value of investments as the dependent variable. The estimated coefficients also show the percentage change as the model uses\na log transformation of the dependent variable. The use of PPML regressions as an alternative to OLS\nregressions is common practice in the trade and finance literature using bilateral country data. "}],"software":[{"name":"Stata"}],"reproduction_instructions":"A readme file with detailed instructions is part of the reproducibility package.","data_statement":"All data is public and contained in the reproducibility package.","scripts":[{"file_name":"PP_WLD_2020_PRWP-9501_prg_v01.zip","zip_package":"PP_WLD_2020_PRWP-9501_prg_v01.zip","title":"Reproducibility package (data and code) for Bilateral International Investments","date":"2023-07","software":"Stata","instructions":"See readme in reproducibility package","license":[{"name":"Modified BSD3","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"source_code_repo":"Reproducible Research Repository (World Bank)","notes":"Checked for reproducibility at Development Impact Evaluation (DIME), World Bank"}],"sponsors":[{"name":"Bank for International Settlements","abbr":"BIS"},{"name":"World Bank Chile Research and Development Center"},{"name":" Spanish Ministry of Economy, Industry, and Competitiveness","grant_no":"ECO2016-79823-P"},{"name":"Spanish Ministry of Science and Innovation","grant_no":"CEX2019-000915-S"},{"name":"Generalitat de Catalunya","grant_no":"2021-SGR-01123"}],"production_date":"2023-07","output":[{"type":"Published Paper","title":"Bilateral International Investments: the Big Sur","authors":"Fernando Broner, Tatiana Didier, Sergio L. Schmukler, Goetz von Peter","doi":"https:\/\/doi.org\/10.1016\/j.jinteco.2023.103795"}],"language":[{"name":"English","code":"EN"}],"repository_uri":[{"name":"Reproducible Research Repository (World Bank)","uri":" https:\/\/reproducibility.worldbank.org"}],"license":[{"name":"Modified BSD3","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"contacts":[{"name":"Goetz von Peter","role":"Author","email":"Goetz.von.Peter@bis.org","affiliation":"Bank for International Settlements"},{"name":"Reproducibility WBG","email":"reproducibility@worldbank.org","uri":"reproducibility.worldbank.org"}],"reproducibility_status":{"type":" Open access","note":"The package contains all code and data needed to reproduce all findings in the report"},"technology_environment":"OS: Windows 10 Enterprise, version 21H2\nProcessor: Intel(R) Core(TM) i7-8665U CPU @ 1.90GHz 2.11 GHz\nMemory available: 15.8 GB\nSoftware version: Stata 16.1","disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/the World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package."},"tags":[{"tag":"DOI"},{"tag":"Fully Reproducible"},{"tag":"WB verified"}],"schematype":"script"}