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

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

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

In: Journal of International Money and Finance, Vol. 140, 102971, 02.2024.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Damgaard, J, Elkjaer, T & Johannesen, N 2024, 'What Is Real and What Is Not in the Global FDI Network?', Journal of International Money and Finance, vol. 140, 102971. https://doi.org/10.1016/j.jimonfin.2023.102971

APA

Damgaard, J., Elkjaer, T., & Johannesen, N. (2024). What Is Real and What Is Not in the Global FDI Network? Journal of International Money and Finance, 140, [102971]. https://doi.org/10.1016/j.jimonfin.2023.102971

Vancouver

Damgaard J, Elkjaer T, Johannesen N. What Is Real and What Is Not in the Global FDI Network? Journal of International Money and Finance. 2024 Feb;140. 102971. https://doi.org/10.1016/j.jimonfin.2023.102971

Author

Damgaard, Jannick ; Elkjaer, Thomas ; Johannesen, Niels. / What Is Real and What Is Not in the Global FDI Network?. In: Journal of International Money and Finance. 2024 ; Vol. 140.

Bibtex

@article{21db15d003c944589ef5518dbacc303b,
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.",
author = "Jannick Damgaard and Thomas Elkjaer and Niels Johannesen",
year = "2024",
month = feb,
doi = "10.1016/j.jimonfin.2023.102971",
language = "English",
volume = "140",
journal = "Journal of International Money and Finance",
issn = "0261-5606",
publisher = "Pergamon Press",

}

RIS

TY - JOUR

T1 - What Is Real and What Is Not in the Global FDI Network?

AU - Damgaard, Jannick

AU - Elkjaer, Thomas

AU - Johannesen, Niels

PY - 2024/2

Y1 - 2024/2

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.

U2 - 10.1016/j.jimonfin.2023.102971

DO - 10.1016/j.jimonfin.2023.102971

M3 - Journal article

VL - 140

JO - Journal of International Money and Finance

JF - Journal of International Money and Finance

SN - 0261-5606

M1 - 102971

ER -

ID: 372532553