Asia’s financial connections with the rest of the world: changing patterns

As economies in the East Asia and Pacific (EAP) region have developed, they have also become important in international financial transactions, both as a source and destination of cross-border bank lending, foreign direct investments (FDI), and portfolio investments. But, as we document in a new paper (Didier et al., 2017), the composition of those financial connections has been changing in recent years in at least two fronts: (i) the partners with which EAP countries interact and (ii) the type of financial transactions conducted.