Compilation and analysis of international from-whom-to-whom financial stock table for Japan, Korea, the United States, and China

Satoru Hagino,Jiyoung Kim

doi:10.1186/s40008-021-00254-4

Abstract

This paper discusses the development of international flow of funds accounts; it compiles and analyzes such accounts with a focus on the global financial crisis. For this purpose, we compile from-whom-to-whom financial stock tables for Japan, Korea, the United States, and China and combine these tables to generate a four-country international from-whom-to-whom financial stock table. Input–output analyses reveal that nonfinancial corporations in the four countries have the largest liability power-of-dispersion and that the Japanese government’s liability power-of-dispersion is large. In contrast, the financial institution sector in Japan has the largest asset power-of-dispersion. In the future, the table could be expanded to include other major Asia–Pacific countries and linked to Euro-area from-whom-to-whom financial stock tables to provide a global from-whom-to-whom financial stock table.

Highlights

Reviewing the world economy of recent years reveals that a savings glut has caused public debt problems in developed economies
2.1 Compilation methods for from‐whom‐to‐whom financial stock tables An FFA2 represents the financial economy in matrix form with economic sectors, such as financial institutions (FIs), Nonfinancial Corporation (NFC), general government (GG), households (HHs), and the rest of the world (ROW), in columns; and financial transactions or asset/liability items, such as deposits, loans, debt securities, equity shares, and insurance/pension reserves (IPs), in rows
The major benefit of these indices is that they enable the identification of the relative position of each sector in the financial market where the sectors are interdependent on one another directly or indirectly

Summary

Introduction

Reviewing the world economy of recent years reveals that a savings glut has caused public debt problems in developed economies. A lack of investment has undermined economic growth in underdeveloped countries. Discrepancies among the financial systems of developed and developing countries hinder the global redistribution of funds. Both financial and real sectors should be considered in analyzing the global economy. Financial transactions and trades are two sides of the same coin. Financial transactions among the entities of multiple countries make up the global financial market, whereas international trade reflects the real economy. International input–output tables that measure the real sector have been developed. Statistics for international financial relations remain undeveloped

Methods

Results

Conclusion