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"China in the past few years has emerged as a net foreign creditor on the international scene with net foreign assets … slightly greater than zero percent of wealth. This is surprising given that China is a relatively poor country with a capital … whether it makes economic sense for China to be a net creditor and how they see China's net foreign asset position evolving …
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"The dramatic increase in gross stock of foreign assets and liability has revived interest in the portfolio balance theory of international investment. Evidence on the validity of this theory has always been scarce and inconclusive. The current paper derives testable empirical implications from...
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