We quantify the impact of barriers to international investment, using a novel multi-country dynamic general equilibrium … asset positions. We estimate this gravity equation using recently developed foreign investment data that have been restated … to account for offshore investment and financing vehicles. We show that a parsimonious implementation of the model with …

enjoys an 'exorbitant privilege' on flow income from foreign assets, which is primarily related to foreign direct investment … FDI investment in 'tax optimisation' countries, the improper consideration of intellectual property, or financial … investment positions of a number of central and southern European countries were greatly supported by EU transfers. Valuation …