IMF Statistics Department 10/16/2012 Coordinated Direct Investment Survey (CDIS) Emma Angulo Balance of Payments Division Statistics Department The views expressed herein are those of the author and should not necessarily be attributed to the IMF, its Executive Board, or its management 1
Outline Purpose of the CDIS Background Implementing the CDIS CDIS-Key Features Direct Investment-Key Concepts Core Data and Additional Information CDIS Results Reporting Economies and 2009-2010 Positions Database SDDS Plus: Requirements for CDIS 2
Purpose of the CDIS Purpose: improve the coverage and comparability of FDI Objectives: collect comprehensive and harmonized data, with detail on immediate counterpart economy, on the stock of inward FDI for major FDI investing countries and others who can provide the information, collect comprehensive and harmonized data, with geographical detail, on the stock of outward FDI compare bilateral data among the participating countries as well as with other countries 3
Background Analytical interest in direct investment Large and growing size Brings expertise and technology (in contrast to other forms of investment) Less volatile source of external finance Increasing interest in bilateral data Coordinated Portfolio Investment Survey (CPIS) 1997 and annually since 2001 IMF surveillance decision BIS bilateral banking data (deposits and loans) OECD and Eurostat (bilateral DI data from their members) Remittances Guide (encourages data on bilateral corridors) Users interested in analysis Compilers check bilateral data 4
Implementing the CDIS Four pillars of the CDIS project: CDIS Guide (available at http://cdis.imf.org/) Provides common definitions and valuation rules Invitations to IMF members and others Regional workshops International and regional organizations to promote CDIS among their membership 5
CDIS Key Features Worldwide statistical survey led by the IMF The concepts, coverage, valuation, and classification of data requested in the CDIS are consistent with: the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6), and the fourth edition of the OECD Benchmark Definition of Foreign Direct Investment (BD4) Annual survey, beginning with end-2009 Value on the books of the direct investment enterprise should be used for both inward and outward direct investment equity bilateral consistency more likely to be comprehensive (e.g., reinvested earnings) than the books of the DI 6
Direct Investment Key Concepts Direct investment arises when a unit resident in one economy (direct investor) owns equity that entitles it to 10 per cent or more of the voting power in an enterprise that is resident in another economy (the Direct Investment Enterprise (DIEnt)), which is not always equal to ownership of ordinary shares Once that threshold has been reached, the entities involved are said to be in a direct investment relationship, and the equity and debt positions between the direct investor and the DIEnt, and between all DIEnts of the same direct investor, are included in direct investment (except for debt between selected financial intermediaries) 7
Direct Investment Key Concepts Inward (when direct investor is nonresident): Direct investment in the reporting economy by counterpart economy the economy from which the investment comes Outward (when direct investor is resident): Direct investment abroad by counterpart economy- the economy into which the investment is sent Directional principle: Direct investor claims on direct investment enterprise Minus direct investment enterprise claims on direct investor (reverse investment) Plus equity and debt between fellow enterprises 8
Direct Investment Key Concepts Direct Investor 10% equity 10% equity Direct Investment Enterprise (DIE) Fellows < 10% equity Direct Investment Enterprise (DIE) 9
CDIS: Core Data For all economies: Inward direct investment positions broken down between equity and debt debt claims and liabilities reported separately by immediate counterpart economy of direct investor (or of fellow enterprise abroad) For economies with significant outward direct investment (and other economies that are able to provide this information): Outward direct investment positions broken down between equity and debt debt claims and liabilities reported separately by immediate counterpart economy of direct investment enterprise (or fellow enterprise abroad) If bilateral information confidential included in regional groupings. 10
CDIS: Additional Information Further breakdowns (encouraged information): Positions between fellow enterprises separately from those with direct investors/direct investment enterprises Additional detail on debt positions of resident financial intermediaries (to better identify and exclude debt positions between financial intermediaries) Metadata Metadata questionnaire: information on the concepts, sources, and methods underlying the data Data and metadata are disseminated only online 11
CDIS Data and Metadata Release Preliminary data and metadata are reported to the IMF within 9 months after the end of the reference year (and disseminated within 12). Preliminary 2010 reported to IMF by September 2011. Dissemination on IMF website: December 2011. Revised data and metadata, if prepared, are reported within 15 months after the end of the reference year (and disseminated within 18). Revised 2010 data reported to IMF by March 2012. Dissemination on IMF website: June 2012. Reporters may provide revised data from 2009 forward together with any future data submission. 12
CDIS Reporting Economies Reporting Economies: 91 economies reported 2009 data and 93 economies reported 2010 data All provided inward and most of them provided outward data as well Most economies reported breakdowns for equity and debt instruments Most economies also provided metadata Total Number of Reporting Economies Equity 2009 2010 Debt instruments Metadata Total Equity Debt instruments Metadata Inward 91 85 83 82 93 87 87 73 Outward 61 57 56 57 64 61 59 53 As of September 2012. 13
CDIS Results US Dollars, trillions 2009 2010 Total Equity Debt instruments Total Equity Debt instruments Inward 20.2 15.6 3.5 22.4 17.6 3.5 Outward 20.3 16.9 2.7 22.1 18.5 2.8 As of September 2012. Data reported by 97 economies (most reported for both 2009 and 2010) 4 economies reported only 2009 data 6 economies reported only 2010 data Equity and debt do not sum to totals as some economies did not provide instrument breakdown 14
CDIS Database Data and metadata are available at http://cdis.imf.org/. It includes: 1. Individual country data and metadata tables 2. Cross-country data and metadata tables, such as: 1. Mirror data tables: inward data reported by one economy can be compared with outward data reported by other economies to help to detect inconsistencies 2. Top ten reporting economies 3. Regional data 3. A new dissemination system is available that allows users to retrieve data from the CDIS database in a more flexible way 15
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Inward Direct Investment: 10 Main Reporting Economies and 10 Main Counterpart Economies-2010 US Dollars, Millions Reporting Economy (Investment in): Counterpart Economy (Investment from): Netherlands United States Luxembourg China, P.R.: Mainland United Kingdom France China, P.R.: Hong Kong Germany Brazil Spain All Other Economies Total United States 584,067 n.a. 274,730 63,454 303,438 103,223 35,042 93,688 125,412 60,229 1,174,223 2,817,505 Netherlands n.a. 217,050 279,787 15,170 187,074 154,894 60,117 216,626 169,505 134,158 1,032,189 2,466,570 United Kingdom 482,076 432,488 614,014 13,483 n.a. 136,657 13,289 70,589 19,581 58,592 560,703 2,401,472 Luxembourg 446,445 181,203 n.a. 2,745 114,438 133,708 C 131,090 29,324 87,165 654,270 1,780,389 France 161,413 184,762 46,560 13,226 104,577 n.a. 3,416 88,605 30,479 41,291 454,571 1,128,900 Germany 114,170 212,915 76,396 28,730 81,887 95,180 3,128 n.a. 16,130 37,705 403,400 1,069,640 Japan 69,653 257,273 1,424 106,303 41,608 11,558 21,753 20,051 27,461 1,944 283,697 842,724 China, P.R.: Hong Kong 7,848 4,272 10,651 710,852 15,184 2,897 n.a. 276 613 C 60,045 812,638 Switzerland 140,791 192,231 34,251 6,647 36,633 73,691 5,798 75,522 14,906 15,728 208,965 805,164 Virgin Islands, British 12,954 C 213,732 3,319 583 324,318 1,334 6,383 C 127,536 690,158 All Other Economies 1,162,340 660,635 616,902 395,263 246,992 291,749 506,664 194,465 211,247 138,303 3,184,734 7,609,293 Total Investment 3,181,756 2,342,829 1,954,715 1,569,606 1,135,149 1,004,140 973,526 892,245 651,041 575,114 8,144,333 22,424,454 As of September 2012. 17
Outward Direct Investment: 10 Main Reporting Economies and 10 Main Counterpart Economies-2010 US Dollars, Millions Reporting Economy (Investment from): Counterpart Economy (Investment in): Netherlands United States Luxembourg United Kingdom France Germany Switzerland Japan China, P.R.: Hong Kong Canada All Other Economies Total United States 448,051 n.a. C 291,033 228,423 208,497 173,584 251,991 3,044 249,685 452,731 2,307,038 United Kingdom 545,855 508,369 221,321 n.a. 173,166 121,686 83,084 37,984 8,855 70,097 343,991 2,114,409 Netherlands n.a. 521,427 214,014 230,448 173,385 82,233 79,457 76,051 C 6,121 497,904 1,881,040 Luxembourg 367,961 274,923 n.a 209,965 73,329 100,282 72,810 9,639 10,410 7,257 303,016 1,429,593 Germany 246,334 105,828 211,722 35,847 109,637 n.a. 54,048 15,327 C 8,733 157,507 944,983 Belgium 165,134 73,526 169,161 64,613 211,153 42,328 11,359 14,130 C 1,096 86,230 838,730 Switzerland 242,719 143,627 138,487 34,868 70,841 32,617 n.a. 1,863 C 6,838 109,408 781,269 France 178,903 92,820 71,115 85,085 n.a. 55,454 27,850 16,224 C 8,750 139,464 675,664 China, P.R.: Mainland 12,988 60,452 C 9,399 14,830 34,724 8,012 66,527 327,649 4,785 93,400 632,767 Canada 107,337 296,691 C 51,037 14,348 12,713 37,324 10,541 C n.a. 61,408 591,399 All Other Economies 1,631,443 1,830,568 865,176 622,435 490,730 444,398 337,611 330,798 449,523 252,772 2,604,659 9,860,112 Total Investment 3,946,724 3,908,231 1,890,996 1,634,730 1,559,844 1,134,932 885,139 831,076 799,481 616,134 4,849,717 22,057,005 As of September 2012. 18
SDDS Plus: Requirements for CDIS Coverage: Disclose participation in the CDIS, and specifically, provide for inward direct investment, the value of outstanding end-year positions by immediate (first) direct investor, by counterpart economy, for both equity and debt. Periodicity and Timeliness: Annual preliminary data, as of end-december each year, are to be reported to the IMF within nine months after the end of the reference year. Dissemination: Countries should disseminate CDIS data on their National Summary Data Page (NSDP) once the data are disseminated by the IMF or provide a hyperlink on their NSDPs to the data 19