European Parliament Library

What Is Real and What Is Not in the Global FDI Network?, Jannick Damgaard, Thomas Elkjaer, Niels Johannesen

Abstract
Macro statistics on foreign direct investment (FDI) are blurred by offshore centers with enormous inward and outward investment positions. This paper uses several 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 investment into corporate shells with no substance and no real links to the local economy may account for almost 40 percent of global FDI. Ignoring phantom investment and allocating real investment to ultimate investors increases the explanatory power of standard gravity variables by around 25 percent
Language
eng
Literary Form
non fiction
Physical Description
1 online resource (55 pages).
Specific Material Designation
remote
Form Of Item
online
Isbn
9780151352326

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