International Financial Integration*

-50-

Figure 8. Rate of Return on Foreign Assets and Equity Share (average 1997-2001)

.1 -

SWE

NLD

ω

φ
ω

SS.05 -

AUS

USA

-.05 -

I

0

JPN            GBR

PRT

AUT

CHE

ITA

FRA

ESP                      DEU

FIN

Portf. eq. share in ext. assets

.3

Figure 9. Rate of Return on Foreign Liabilities and Equity Share (average 1997-2001)

.2 -

FIN

NLD

PRT       USA FRASWE         CHE

GBR

ITAUT

AUS

Portf. equity share in ext. liab

^-Γ

.6

Note: Averaged data over 1997-2001. Correlation between portfolio equity share and rate of
return is 0.60 for external assets, 0.80 (0.59 excluding Finland) for external liabilities.