The Global FDI Network: Searching for Ultimate Investors

Author/Editor:

Jannick Damgaard ; Thomas Elkjaer

Publication Date:

November 17, 2017

Electronic Access:

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Summary:

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.

Series:

Working Paper No. 2017/258

Subject:

English

Publication Date:

November 17, 2017

ISBN/ISSN:

9781484329658/1018-5941

Stock No:

WPIEA2017258

Pages:

25

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