The Global FDI Network: Searching for Ultimate Investors

Author/Editor:

Jannick Damgaard ; Thomas Elkjaer

Publication Date:

November 17, 2017

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Link to data for this title

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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. 17/258

Subject:

English

Publication Date:

November 17, 2017

ISBN/ISSN:

9781484329658/1018-5941

Stock No:

WPIEA2017258

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

25

Please address any questions about this title to publications@imf.org