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A consolidated-by-nationality approach to Irish foreign exposure

Author

Listed:
  • Andre Sanchez Pacheco

    (Department of Economics, Trinity College Dublin)

Abstract
How exposed is Ireland to foreign shocks? Relying on residence-based measures of foreign holdings to answer this question can be challenging. These statistics are obscured by the vast presence of Special Purpose Entities in the country. Alternatively, I construct an estimate of the Irish consolidated-by-nationality foreign balance sheet for the period between 2011 and 2019 based on a novel methodology that builds on firm-level data. I find that Ireland's consolidated foreign balance sheet is on average 46.7% smaller relative to its residence-based analogue. I interpret this result as an indication that Ireland is significantly less exposed to foreign shocks than what is suggested by residence-based statistics.

Suggested Citation

  • Andre Sanchez Pacheco, 2021. "A consolidated-by-nationality approach to Irish foreign exposure," Trinity Economics Papers tep1421, Trinity College Dublin, Department of Economics, revised Dec 2021.
    • Handle: RePEc:tcd:tcduee:tep1421
    as

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    File URL: https://www.tcd.ie/Economics/TEP/2021/TEP1421.pdf
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    References listed on IDEAS

    as
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. A Consolidated-by-Nationality Approach to Irish Foreign Exposure
      by The Irish Economy in The Irish Economy on 2021-12-07 13:45:38

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    1. Agustín Bénétrix & André Sanchez, 2023. "Corporate Taxation and International Financial Integration: U.S. evidence from a consolidated perspective," Oxford Open Economics, Oxford University Press, vol. 2, pages 47-66.
    2. André Sanchez Pacheco, . "Consolidated foreign wealth of nations: Nationality-based measures of international exposure," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    3. Golden, Brian & Maqui, Eduardo, 2023. "How ‘special’ are international banks sponsoring Irish-resident SPEs?," Finance Research Letters, Elsevier, vol. 52(C).
    4. Beck, Roland & Coppola, Antonio & Lewis, Angus & Maggiori, Matteo & Schmitz, Martin & Schreger, Jesse, 2023. "The Geography of Capital Allocation in the Euro Area," Research Papers 4102, Stanford University, Graduate School of Business.

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    More about this item

    Keywords

    International financial integration; financial globalisation; consolidated-by-nationality statistics;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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