For example, cross-border investments are far larger now than they were twenty years ago. From 1984 to 2003, U.S. investment holdings abroad more than tripled after controlling for inflation, while real U.S. gross domestic product did not quite double.
Foreign investments in the U.S. rose proportionately much more, by almost a factor of six.1 Because of increased market turnover, cross-border transactions have grown even faster than cross-border holdings.