The Global FDI Network: Searching for Ultimate Investors
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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:
Asset and liability management Balance of payments Financial services Foreign direct investment Offshore financial centers Special purpose vehicle
English
Publication Date:
November 17, 2017
ISBN/ISSN:
9781484329658/1018-5941
Stock No:
WPIEA2017258
Pages:
25
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