What is real and what is not in the global FDI network?
Macro statistics on foreign direct investment (FDI) are blurred by offshore financial centers with enormous inward and outward investment positions. This paper uses new data sources, both macro and micro, to estimate the global FDI network while disentangling real investment and phantom investment a...
| Main Authors: | , , |
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| Format: | Journal article |
| Language: | English |
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Elsevier
2023
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| _version_ | 1826312909173555200 |
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| author | Damgaard, J Elkjaer, T Johannesen, N |
| author_facet | Damgaard, J Elkjaer, T Johannesen, N |
| author_sort | Damgaard, J |
| collection | OXFORD |
| description | Macro statistics on foreign direct investment (FDI) are blurred by offshore financial centers with enormous inward and outward investment positions. This paper uses 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 FDI into corporate shells with no substance and no real links to the local economy accounts for around 40 percent of global FDI. Ignoring Phantom FDI and allocating Real FDI to ultimate investors increases the explanatory power of standard gravity variables by around 25 percent. |
| first_indexed | 2024-04-09T03:55:28Z |
| format | Journal article |
| id | oxford-uuid:dece9822-c4a6-4806-b6f7-b4b5846c5a66 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-09-25T04:02:32Z |
| publishDate | 2023 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oxford-uuid:dece9822-c4a6-4806-b6f7-b4b5846c5a662024-04-30T16:07:19ZWhat is real and what is not in the global FDI network?Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:dece9822-c4a6-4806-b6f7-b4b5846c5a66EnglishSymplectic ElementsElsevier2023Damgaard, JElkjaer, TJohannesen, NMacro statistics on foreign direct investment (FDI) are blurred by offshore financial centers with enormous inward and outward investment positions. This paper uses 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 FDI into corporate shells with no substance and no real links to the local economy accounts for around 40 percent of global FDI. Ignoring Phantom FDI and allocating Real FDI to ultimate investors increases the explanatory power of standard gravity variables by around 25 percent. |
| spellingShingle | Damgaard, J Elkjaer, T Johannesen, N What is real and what is not in the global FDI network? |
| title | What is real and what is not in the global FDI network? |
| title_full | What is real and what is not in the global FDI network? |
| title_fullStr | What is real and what is not in the global FDI network? |
| title_full_unstemmed | What is real and what is not in the global FDI network? |
| title_short | What is real and what is not in the global FDI network? |
| title_sort | what is real and what is not in the global fdi network |
| work_keys_str_mv | AT damgaardj whatisrealandwhatisnotintheglobalfdinetwork AT elkjaert whatisrealandwhatisnotintheglobalfdinetwork AT johannesenn whatisrealandwhatisnotintheglobalfdinetwork |