2023 Fiscal Year Annual Research Report
Research on the analysis methods and the development of global flow of funds statistics
| Project/Area Number |
20K01701
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| Research Institution | Hiroshima Shudo University |
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Principal Investigator |
張 南 広島修道大学, 経済科学部, 教授 (20279061)
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| Project Period (FY) |
2020-04-01 – 2024-03-31
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| Keywords | Global flow of funds / Financial network / Statistical matrix / Who-to-whom model / Sectoral accouns / Datasets |
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| Outline of Annual Research Achievements |
This research makes a significant contribution to financial statistics, international finance, and macro-prudential regulation by introducing a novel analytical perspective and methodology. The proposed statistical framework is built upon the concept of the global flow of funds (GFF), leveraging existing metadata to integrate diverse data sources. The resulting GFF statistical matrix is structured as a "who-to-whom" matrix, encompassing both the matrix of external financial assets and liabilities and the matrix of international capital inflow-outflow. These matrices serve to illustrate the relationships between countries in terms of capital operations and balance sheets.
Using GFF as its framework, this research conducts a dynamic analysis of the reciprocal relationship between the current account balance and financial investment in China and the US. The analysis is carried out through the application of a vector error correction model and includes an assessment of the strategic challenges posed by the economic decoupling of the US and China. Furthermore, the research delves into various facets of financial position, credit relationships, interactions, and debt risk within the GFF framework. Notably, it introduces the sectoral from-whom-to-whom financial stock matrix (SFSM) for providing insights into the application of financial networks for evaluating the shock propagation associated with external financial assets and liabilities across different sectors in G-4 economics (China, Japan, the United Kingdom, and the US).
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