Ceballos, FranciscoDidier, TatianaSchmukler, Sergio L.2012-06-292012-06-292012-06https://hdl.handle.net/10986/9325Financial globalization has gathered attention since the early 1990s because of its macro-financial implications and growing importance. But financial globalization has taken shape via different forms over time. This paper examines two important, concurrent dimensions of financial globalization: diversification and offshoring. The diversification dimension refers to the increase in foreign assets and liabilities in countries' portfolios. Offshoring is related to the reallocation of financial activities to international markets. The former focuses on who holds the assets, the latter on where transactions take place. The authors find that globalization via the diversification channel expanded throughout the world during the 2000s, as domestic residents invested more abroad and foreigners increased their investments at home, generating more cross-border holdings. However, financial globalization via offshoring displays more mixed patterns, with variations across markets and countries. The paper also shows that the nature of financing through both diversification and offshoring has improved for emerging countries.en-USCC BY 3.0 IGOACCESS TO CAPITALADVERSE EFFECTSAGENCY PROBLEMSASSET HOLDINGSASSET POSITIONSASSET PRICESASSET PRICINGASSET QUALITYBALANCE OF PAYMENTSBANK CLAIMSBONDBOND FINANCINGBOND ISSUANCEBOND ISSUESBOND MARKETSBOND MATURITIESCAPITAL ACCOUNTCAPITAL ACCOUNT LIBERALIZATIONCAPITAL CONTROLSCAPITAL FLIGHTCAPITAL FLOWCAPITAL FLOWSCAPITAL GAINSCAPITAL INFLOWSCAPITAL MARKETSCAPITAL OUTFLOWSCAPITAL-RAISING ACTIVITYCENTRAL BANKCORPORATE BONDCORPORATE BOND MARKETSCORPORATE BONDSCORPORATE GOVERNANCECOST OF CAPITALCREDIT RISKCREDITORCREDITORSCROSS-BORDER CAPITALCURRENCY CRISESCURRENCY MISMATCHESDEBTDEBT CONTRACTSDEBT INVESTMENTSDEBTORDEBTORSDEPOSITARY RECEIPTSDEPOSITORYDEVALUATIONDEVALUATIONSDEVELOPING COUNTRIESDISCLOSURE STANDARDSDIVERSIFICATIONDOMESTIC CAPITALDOMESTIC CAPITAL MARKETSDOMESTIC CURRENCIESDOMESTIC CURRENCYDOMESTIC DEBTDOMESTIC DEBT MARKETSDOMESTIC ECONOMIESDOMESTIC EQUITYDOMESTIC FINANCIAL MARKETSDOMESTIC INVESTORSDOMESTIC LIQUIDITYDOMESTIC MARKETDOMESTIC MARKETSDOMESTIC STOCKECONOMIC DEVELOPMENTECONOMIC POLICIESEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET PORTFOLIOSEMERGING MARKETSEQUITIESEQUITY CAPITALEQUITY CONTRACTSEQUITY FINANCINGEQUITY HOLDINGSEQUITY INVESTMENTSEQUITY ISSUANCEEQUITY ISSUESEQUITY MARKETSEQUITY PRICESEQUITY TRADINGEXCHANGE RATEEXPOSUREEXPROPRIATIONEXTERNAL ASSETEXTERNAL ASSETSFINANCIAL ASSETSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL FLOWSFINANCIAL INSTITUTIONSFINANCIAL LIBERALIZATIONFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL SHOCKSFINANCIAL STRESSFINANCIAL SUPPORTFINANCIAL SYSTEMFINANCIAL TRANSACTIONSFLOATING RATESFOREIGN ASSETSFOREIGN BANKFOREIGN BANKSFOREIGN CAPITALFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN DEBTFOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENTSFOREIGN EQUITYFOREIGN EXCHANGEFOREIGN FINANCINGFOREIGN HOLDINGSFOREIGN INVESTMENTSFOREIGN INVESTORSFOREIGN MARKETFOREIGN MARKETSFOREIGN PORTFOLIOFOREIGN STOCKFOREIGN STOCKSGLOBAL CAPITALGLOBAL CAPITAL MARKETSGLOBAL FINANCIAL SYSTEMGLOBALIZATIONGOVERNANCE PRACTICESGOVERNMENT BONDSHEDGE FUNDSHOLDINGSINSURANCEINTERNATIONAL BANKINTERNATIONAL BONDINTERNATIONAL BOND MARKETSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL DEBTINTERNATIONAL DEBT SECURITIESINTERNATIONAL ECONOMICSINTERNATIONAL EQUITYINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INTEGRATIONINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL INVESTORSINTERNATIONAL MARKETSINTERNATIONAL RESERVESINTERNATIONAL SETTLEMENTSINTERNATIONAL TRANSACTIONSINVESTINGINVESTMENT OPPORTUNITIESISSUANCEISSUANCE OF BONDSJURISDICTIONSLEVYLIABILITYLIABILITY SIDELIQUIDITYLOCAL CAPITAL MARKETSLOCAL CURRENCIESLOCAL CURRENCYLOCAL MARKETSMARKET CAPITALIZATIONMARKET CONCENTRATIONMARKET FOR BONDMARKET LIQUIDITYMARKET SEGMENTATIONMATURITYMATURITY MISMATCHESMONETARY FUNDMUTUAL FUNDMUTUAL FUND STRATEGIESMUTUAL FUNDSNET CAPITALNET DEBTOFFSHORE MARKETSOUTSTANDING AMOUNTSPOLITICAL ECONOMYPORTFOLIOPORTFOLIOSPRIVATE BONDPRIVATE BONDSPRIVATE SECTOR BONDPUBLIC DEBTPUBLIC DEBT MARKETSPUBLIC SECTOR BONDPUBLIC SECTOR BONDSREGULATORY ENVIRONMENTSREGULATORY REQUIREMENTSREPUTATIONRESERVESRETURNRETURNSSECURITIESSHAREHOLDERSHORT-TERM DEBTSHORT-TERM FOREIGN LIABILITIESSTOCK EXCHANGESTOCK EXCHANGESSTOCK ISSUANCESTOCK MARKETSTOCK MARKET DEVELOPMENTSTOCK MARKETSSTOCKSTRADINGTRADING ACTIVITYTRADING VOLUMETRANSACTIONTRANSPARENCYTRUST FUNDVALUATIONVALUATIONSVOLATILE CAPITALVOLATILITYWORLD MARKETSWorld Bank10.1596/1813-9450-6105