The Global FDI Network: Searching for Ultimate Investors

The Global FDI Network: Searching for Ultimate Investors
Author: Jannick Damgaard
Publisher: International Monetary Fund
Total Pages: 25
Release: 2017-11-17
Genre: Business & Economics
ISBN: 1484329651

This paper addresses three types of geographical decoupling in foreign direct investment (FDI), i.e., challenges when using traditional FDI data as a proxy for real economic integration between economies: (i) large bilateral asymmetries between inward and outward FDI, (ii) the role of special purpose entities (SPEs), and (iii) the effect of moving from immediate counterpart to ultimate investing economy (UIE). A unique global FDI network is estimated, where SPEs are removed and FDI positions are broken down by the UIE. Total inward FDI in the new network is reduced by one-third, and financial centers are less dominant.

The Global FDI Network: Searching for Ultimate Investors

The Global FDI Network: Searching for Ultimate Investors
Author: Jannick Damgaard
Publisher: International Monetary Fund
Total Pages: 25
Release: 2017-11-17
Genre: Business & Economics
ISBN: 1484330293

This paper addresses three types of geographical decoupling in foreign direct investment (FDI), i.e., challenges when using traditional FDI data as a proxy for real economic integration between economies: (i) large bilateral asymmetries between inward and outward FDI, (ii) the role of special purpose entities (SPEs), and (iii) the effect of moving from immediate counterpart to ultimate investing economy (UIE). A unique global FDI network is estimated, where SPEs are removed and FDI positions are broken down by the UIE. Total inward FDI in the new network is reduced by one-third, and financial centers are less dominant.

Looking Through Conduit FDI in Search of Ultimate Investors - A Probabilistic Approach

Looking Through Conduit FDI in Search of Ultimate Investors - A Probabilistic Approach
Author: Bruno Casella
Publisher:
Total Pages: 38
Release: 2020
Genre:
ISBN:

This paper presents a novel computational method to determine the distribution of ultimate investors in bilateral FDI stock. The approach employs results from the probabilistic theory of absorbing Markov chains. The method allows for the estimation of a bilateral matrix that provides inward positions by ultimate counterparts for over 100 recipient countries, covering 95% of total FDI stock and including many developing countries. Reconstructing the global FDI network by ultimate investors enables a more accurate and complete snapshot of international production than do standalone bilateral FDI statistics. This has considerable implications for policymaking. It also provides more nuanced context to some contemporary developments such as the trade tensions between the United States, China and others, as well as Brexit.

What Is Real and What Is Not in the Global FDI Network?

What Is Real and What Is Not in the Global FDI Network?
Author: Jannick Damgaard
Publisher: International Monetary Fund
Total Pages: 54
Release: 2019-12-11
Genre: Business & Economics
ISBN: 1513521527

Macro statistics on foreign direct investment (FDI) are blurred by offshore centers with enormous inward and outward investment positions. This paper uses several new data sources, both macro and micro, to estimate the global FDI network while disentangling real investment and phantom investment and allocating real investment to ultimate investor economies. We find that phantom investment into corporate shells with no substance and no real links to the local economy may account for almost 40 percent of global FDI. Ignoring phantom investment and allocating real investment to ultimate investors increases the explanatory power of standard gravity variables by around 25 percent.

World Investment Report 2019

World Investment Report 2019
Author: United Nations Publications
Publisher:
Total Pages: 236
Release: 2019-08-16
Genre: Political Science
ISBN: 9789211129496

This report focuses on special economic zones (SEZs) which are widely used across most developing and many developed economies. It explores the place of SEZs in today's global investment landscape and provides guidance for policymakers on how to make SEZs work for sustainable development. It presents international investment trends and prospects at global, regional and national levels, as well as the evolution of international production and global value chains. It analyses the latest developments in new policy measures for investment promotion, facilitation and regulation around the world.

Foreign Direct Investment Statistics How Countries Measure FDI

Foreign Direct Investment Statistics How Countries Measure FDI
Author: OECD
Publisher: OECD Publishing
Total Pages: 169
Release: 2004-01-27
Genre:
ISBN: 1589062205

Foreign Direct Investment Statistics: How Countries Measure FDI shows progress in recent years in moving toward compilation in accordance with international standards that have been established by the International Monetary Fund (IMF) and the ...

OECD Benchmark Definition of Foreign Direct Investment 2008 Fourth Edition

OECD Benchmark Definition of Foreign Direct Investment 2008 Fourth Edition
Author: OECD
Publisher: OECD Publishing
Total Pages: 254
Release: 2009-10-15
Genre:
ISBN: 9264045740

The OECD Benchmark Definition of Foreign Direct Investment sets the world standard for FDI statistics. It provides a single point of reference for statisticians and users on all aspect of FDI statistics, while remaining compatible with other internationally accepted statistical standards.

Foreign Direct Investment in Latin America and the Caribbean 2010

Foreign Direct Investment in Latin America and the Caribbean 2010
Author: United Nations
Publisher: UN
Total Pages: 0
Release: 2012
Genre: Political Science
ISBN: 9789211217599

In 2010, the Latin American and Caribbean region showed great resilience to the international financial crisis and became the world region with the fastest-growing flows of both inward and outward foreign direct investment (FDI). The upswing in FDI in the region has occurred in a context in which developing countries in general have taken on a greater share in both inward and outward FDI flows. This briefing paper is divided into five sections. The first offers a regional overview of FDI in 2010. The second examines FDI trends in Central America, Panama and the Dominican Republic. The third describes the presence China is beginning to build up as an investor in the region. Lastly, the fourth and fifth sections analyze the main foreign investments and business strategies in the telecommunications and software sectors, respectively.