What is Real and What is Not in the Global FDI Network?

Publikation: Working paperForskning

Standard

What is Real and What is Not in the Global FDI Network? / Damgaard, Jannick; Elkjaer, Thomas; Johannesen, Niels.

2020.

Publikation: Working paperForskning

Harvard

Damgaard, J, Elkjaer, T & Johannesen, N 2020 'What is Real and What is Not in the Global FDI Network?'. https://doi.org/10.2139/ssrn.3522429

APA

Damgaard, J., Elkjaer, T., & Johannesen, N. (2020). What is Real and What is Not in the Global FDI Network? CEBI Working Paper Series Nr. 02/20 https://doi.org/10.2139/ssrn.3522429

Vancouver

Damgaard J, Elkjaer T, Johannesen N. What is Real and What is Not in the Global FDI Network? 2020 feb. 14. https://doi.org/10.2139/ssrn.3522429

Author

Damgaard, Jannick ; Elkjaer, Thomas ; Johannesen, Niels. / What is Real and What is Not in the Global FDI Network?. 2020. (CEBI Working Paper Series; Nr. 02/20).

Bibtex

@techreport{917f3423331e41779ecf9028505b8c39,
title = "What is Real and What is Not in the Global FDI Network?",
abstract = "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.",
keywords = "Global FDI Network, Special Purpose Entities, Phantom FDI, Real FDI",
author = "Jannick Damgaard and Thomas Elkjaer and Niels Johannesen",
year = "2020",
month = feb,
day = "14",
doi = "10.2139/ssrn.3522429",
language = "English",
series = "CEBI Working Paper Series",
number = "02/20",
type = "WorkingPaper",

}

RIS

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 - 2020/2/14

Y1 - 2020/2/14

N2 - 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.

AB - 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.

KW - Global FDI Network

KW - Special Purpose Entities

KW - Phantom FDI

KW - Real FDI

U2 - 10.2139/ssrn.3522429

DO - 10.2139/ssrn.3522429

M3 - Working paper

T3 - CEBI Working Paper Series

BT - What is Real and What is Not in the Global FDI Network?

ER -

ID: 248762763