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INVESTING AT HOME OR SAVING: A NOTE ON CHILE'S FINANCIAL FLOWS.
- Source :
-
Revista Chilena de Economía y Sociedad . Dic2022, Vol. 16 Issue 2, p96-120. 25p. - Publication Year :
- 2022
-
Abstract
- In this paper, we analyze the financial flow of funds between Chile and its trade and investment partners using balance of payments data for Chile and for a set of comparable economies. We show that the inbound and outbound financial flows have been consistently balanced by long term funding, at least up to the year 2020, Chile showing a positive position on foreign portfolio investments grossly matched by a negative position on foreign direct investments. However, we document a systematic deficit in terms of returns and yields: inbound financing is more remunerative than outbound financing. The imbalance is especially salient as per the direct investments. The last part of the paper is devoted to a somewhat open discussion on whether a better matching of funds could be effected to the overall advantage of Chile, in what is called the 'inwardization' of domestic finance. Some economic policy considerations result. [ABSTRACT FROM AUTHOR]
- Subjects :
- *FOREIGN investments
*ECONOMIC policy
*BALANCE of payments
*DEFICIT financing
Subjects
Details
- Language :
- English
- ISSN :
- 07183933
- Volume :
- 16
- Issue :
- 2
- Database :
- Academic Search Index
- Journal :
- Revista Chilena de EconomÃa y Sociedad
- Publication Type :
- Academic Journal
- Accession number :
- 163596395