Uses of FDI statistics

Transcription

1 Uses of FDI statistics MENA-OECD TASK FORCE ON FOREIGN DIRECT INVESTMENT STATISTICS FOR POLICY MAKING Training Seminar Bahrain Investment Center 12 December 2007 by Ayse Bertrand Manager, International Investment Statistic Investment Division, Directorate for Financial and Enterprise Affairs, OECD 1

2 Why measure FDI? Deregulation of markets Capital movements International economic integration Globalisation FDI driver of globalisation Market access Transfer of technology, know how Develop financial markets Develop labor markets Promote international trade Etc. 2

3 Uses of FDI Regular Trends analysis part of macro-economic analysis Part of cross-border financial analysis Source and destination of investment By partner By industry 3

4 FDI trends in OECD 4

5 FDI to and from OECD 5

6 Net FDI of OECD 6

7 Features of FDI FDI and other economic accounts National financial accounts and flow of funds accounts Balance of payments functional category Financial accounts Activities of MNEs 7

8 How to analyse FDI accounts FDI positions (stocks) Structural analysis FDI flows FDI income Earnings of DIE & DI 8

9 Need for indicators What is the value of inward and outward FDI relative to the size of home and host economies? How does the return on FDI compare to the investment positions from which the return is generated? What is the value of goods and services delivered or sold by foreign affiliates, both in their countries of location and elsewhere? How much of this value represents value added within the affiliates, as compared to value added by the producers that supply affiliates with intermediate inputs or goods for resale? What is employment by foreign affiliates, and how does it compare with employment in home and host economies, or with total employment within the multinational firms to which they belong? How much international trade is accounted for by foreign affiliates or by direct investors? What is the value of the goods and services that they export and import? 9

10 Indicators of Globalisation Related to FDI Reference indicators Extent of globalisation through FDI (total FDI or by industry Contribution of host and investing economies or of industries to globalisation through FDI Return on FDI Supplemental indicators Degree of concentration of FDI ( for total FDI or by partner or by industry) Dynamics of FDI in reporting economy Share of FDI by partner country and by economic sector 10

11 Indicators of Globalisation Related to FDI Extent of globalisation through FDI (total FDI or by industry Inward FDI financial flows as a percentage of GDP Outward FDI financial flows as a percentage of GDP Inward FDI income flows as a percentage of GDP Outward FDI income flows as a percentage of GDP Inward FDI positions as a percentage of GDP Outward FDI positions as a percentage of GDP 11

12 Indicators of Globalisation Related to FDI Contribution of host and investing economies or of industries to globalisation through FDI Relative share of inward/outward FDI financial flows by partner country as a percentage of total inward/outward FDI flows. Relative share of inward/outward FDI positions by partner country as a percentage of total inward/outward FDI positions. Relative share of inward/outward FDI financial flows by industry as a percentage of total inward/outward FDI flows. Relative share of inward/outward FDI positions by industry as a percentage of total inward/outward FDI position. 12

13 Indicators of Globalisation Related to FDI (iii) Return on FDI Inward FDI equity income debits [debits for a) dividends/distributed branch profits, plus b) reinvested earnings/undistributed branch profits] as a percentage of inward FDI position [rate of return for total inward FDI or by industry or investing country]. Outward FDI equity income credits [credits for a) dividends/distributed branch profits, plus b) reinvested earnings/undistributed branch profits] as a percentage of outward FDI position [rate of return for total outward FDI or by industry or investing country]. 13

14 Indicators of Globalisation Related to FDI (iv) Degree of concentration of FDI ( for total FDI or by partner or by industry) Herfindhal index of inward financial flows Herfindhal index of outward financial flows Herfindhal index of inward financial positions Herfindhal index of outward financial positions 14

15 Indicators of Globalisation Related to FDI (v) Dynamics of FDI in reporting economy Inward FDI positions as a percentage of the total liabilities of the domestic economy (balance sheet totals) Outward FDI positions as a percentage of the total assets of the domestic economy (balance sheet totals) 15

16 Indicators of Globalisation Related to FDI (vi) Share of FDI by partner country and by economic sector Inward/outward equity capital flows as a % of inward/outward FDI flows Inward/outward RE as a % of inward/outward FDI flows Inward/outward debt instr. as a % of inward/outward FDI flows Inward/outward equity +RE as a % of inward/outward FDI positions Inward/outward debt instr. as a % of inward/outward FDI positions 16

17 Most Frequently Asked uestions 1) What is the relation between FDI transactions, positions (stocks) and income? 2) How to interpret negative values for FDI flows and positions? 3) Why are there such large revisions in the FDI data? 17

18 Most Frequently Asked uestions 4) What are the criteria for the classification of FDI by economic activity: according to the activity of the resident parent company or that of the non-resident enterprise? 5) Why are large FDI transactions concentrated in particular countries i.e. what is the role of capital in transit and/or passing through Special Purpose Entities (SPE)? 18

19 Most Frequently Asked uestions 6) How complementary are FDI statistics and the statistics on the Activities of Multinational Enterprises (AMNE)? 7) Why are there discrepancies (sometimes significant) in the data provided by international organisations? 19

20 THANK YOU 20