Goldbach, Stefan ; Harms, Philipp ; Jochem, Axel ; Nitsch, Volker ; Weichenrieder, Alfons J. (2024)
Retained earnings, foreign portfolio ownership, and the German current account: A firm-level approach.
doi: 10.26083/tuprints-00027468
Report, Primary publication, Publisher's Version
Text
DDPIE_246.pdf Copyright Information: In Copyright. Download (1MB) |
Item Type: | Report |
---|---|
Type of entry: | Primary publication |
Title: | Retained earnings, foreign portfolio ownership, and the German current account: A firm-level approach |
Language: | English |
Date: | 10 June 2024 |
Place of Publication: | Darmstadt |
Issue Number: | 246 |
Series: | Darmstadt Discussion Papers in Economics |
Collation: | 22 Seiten |
DOI: | 10.26083/tuprints-00027468 |
Abstract: | In some countries, a sizable fraction of savings is derived from corporate savings. Although larger, traded corporations are often co-owned by foreign portfolio investors, current international accounting standards allocate all corporate savings to the host country. This paper suggests a framework to correct for this misleading attribution and applies this concept to Germany. For the years 2012 to 2020, our corrections retrospectively reduce German savings and consequently the German current account surplus by, on average, €11.5bn annually. This amounts to lowering Germany’s average official current account surplus (€226.6bn) across these years by approximately five percent. |
Uncontrolled Keywords: | current account; balance of payments; corporate savings; retained earnings, foreign portfolio investment; Germany |
Status: | Publisher's Version |
URN: | urn:nbn:de:tuda-tuprints-274680 |
Classification DDC: | 300 Social sciences > 330 Economics |
Divisions: | 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > International Economics |
Date Deposited: | 10 Jun 2024 11:35 |
Last Modified: | 11 Jun 2024 11:13 |
URI: | https://tuprints.ulb.tu-darmstadt.de/id/eprint/27468 |
PPN: | 519009215 |
Export: |
View Item |