Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272274 
Year of Publication: 
2023
Series/Report no.: 
SAFE Working Paper No. 389
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
Abstract: 
In some countries, a sizable fraction of savings is derived from corporate savings. Although larger, traded corporations are often co-owned by foreign portfolio investors, current international accounting standards allocate all corporate savings to the host country. This paper suggests a framework to correct for this misleading attribution and applies this concept to Germany. For the years 2012 to 2020, our corrections retrospectively reduce German savings and consequently the German current account surplus by, on average, €11.5bn annually. This amounts to approximately five percent of Germany's average official current account surplus (€226.6bn) across these years.
Subjects: 
current account
balance of payments
corporate savings
retained earnings
foreign portfolio investment
Germany
JEL: 
F32
E21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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