Estimation of “Dark Matter” in the External Sector of the United States After the Outbreak of the World Economic Crisis in 2009

Konrad Sobański

Abstract

The 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.
Author Konrad Sobański (WGM / KFM)
Konrad Sobański,,
- Department of International Finance
Pages237-249
Publication size in sheets0.6
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 Polishrachunek dochodów zagranicznych, międzynarodowa pozycja inwestycyjna, hipoteza ciemnej materii, Stany Zjednoczone
Keywords in EnglishIncome account, International investment position, “Dark matter” hypothesis, The United States
DOIDOI:10.1007/978-3-030-40375-1_17
URL https://link.springer.com/chapter/10.1007%2F978-3-030-40375-1_17
Languageen angielski
Score (nominal)20
Score sourcepublisherList
ScoreMinisterial score = 20.0, 08-04-2020, ChapterFromConference
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