What Is Real and What Is Not in the Global FDI Network?
Publikation: Working paper › Forskning
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What Is Real and What Is Not in the Global FDI Network? / Damgaard, Jannick; Elkjaer, Thomas ; Johannesen, Niels.
International Monetary Fund, 2019.Publikation: Working paper › Forskning
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TY - UNPB
T1 - What Is Real and What Is Not in the Global FDI Network?
AU - Damgaard, Jannick
AU - Elkjaer, Thomas
AU - Johannesen, Niels
PY - 2019/12
Y1 - 2019/12
N2 - Macro statistics on foreign direct investment (FDI) are blurred by offshore centers withenormous inward and outward investment positions. This paper uses several new datasources, both macro and micro, to estimate the global FDI network while disentangling realinvestment and phantom investment and allocating real investment to ultimate investoreconomies. We find that phantom investment into corporate shells with no substance and noreal links to the local economy may account for almost 40 percent of global FDI. Ignoringphantom investment and allocating real investment to ultimate investors increases theexplanatory power of standard gravity variables by around 25 percent.
AB - Macro statistics on foreign direct investment (FDI) are blurred by offshore centers withenormous inward and outward investment positions. This paper uses several new datasources, both macro and micro, to estimate the global FDI network while disentangling realinvestment and phantom investment and allocating real investment to ultimate investoreconomies. We find that phantom investment into corporate shells with no substance and noreal links to the local economy may account for almost 40 percent of global FDI. Ignoringphantom investment and allocating real investment to ultimate investors increases theexplanatory power of standard gravity variables by around 25 percent.
KW - Faculty of Social Sciences
KW - Development
KW - Offshore financial centers
KW - Foreign investment
KW - Economic integration
KW - Economic growth
KW - Global FDI Network
KW - Special Purpose Entities
KW - Phantom FDI
KW - Real FDI
KW - WP
KW - FDI
KW - total FDI
KW - SPEs
KW - ultimate owner
KW - Orbis
M3 - Working paper
T3 - IMF Working Papers
BT - What Is Real and What Is Not in the Global FDI Network?
PB - International Monetary Fund
ER -
ID: 231707672