Estimation of “Dark Matter” in the External Sector of the United States After the Outbreak of the World Economic Crisis in 2009
AbstractThe aim of this chapter is to estimate the “dark matter” assets in the external sector of the United States after the outbreak of the world economic crisis in 2009. The author conducts a statistical analysis using a time series on the balance of payments (BoP) and international investment position (IIP) data for the United States and a group of 19 developed economies. The study reveals that the United States is a privileged economy with respect to foreign income on international investments. The rates of return on its foreign assets are relatively higher, and the costs incurred on its foreign liabilities relatively lower, as compared with the benchmark group of developed countries. Based on prevailing income differentials substantial “dark matter” net assets in the external sector of the US economy are estimated. Consequently, the actual net IIP deviates significantly from that officially reported. Recognizing such “dark matter” leads to the conclusion that the United States is a foreign creditor, not a debtor.
|Publication size in sheets||0.6|
|Book||Bilgin Mehmet Huseyin, Danis Hakan, Karabulut Gökhan, Gözgor Giray (eds.): Eurasian Economic Perspectives. Proceedings of the 23rd Eurasia Business and Economics Society Conference, Eurasian Studies in Business and Economics, vol. 13/1, 2020, Springer, ISBN 978-3-030-40374-4, [978-3-030-40375-1], 478 p., DOI:10.1007/978-3-030-40375-1|
|Keywords in Polish||rachunek dochodów zagranicznych, międzynarodowa pozycja inwestycyjna, hipoteza ciemnej materii, Stany Zjednoczone|
|Keywords in English||Income account, International investment position, “Dark matter” hypothesis, The United States|
|Score||= 20.0, 08-04-2020, ChapterFromConference|
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