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Uses of FDI statistics. Ayse Bertrand Investment Division, OECD ayse.bertrand@oecd.org. Uses of FDI statistics. An overview Users’ expectation Do we meet user needs?. Uses of FDI statistics. Overview Why measure FDI? Understanding main features Interpreting FDI statistics
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Uses of FDI statistics Ayse Bertrand Investment Division, OECD ayse.bertrand@oecd.org
Uses of FDI statistics • An overview • Users’ expectation • Do we meet user needs?
Uses of FDI statistics Overview • Why measure FDI? • Understanding main features • Interpreting FDI statistics • Most frequently asked question
Why measure FDI • Liberalisation of capital movements • Motivation of FDI • Lasting relationship • Influence/control the management/decision making • FDI is a part of macro-economic statistics • Key element for globalisation
Main Features • Links with other macro-economic analysis • 10 per cent ownership of voting power • More & more complex investment patterns of MNEs • More & more complex group structures • Types of data: financial flows and stocks, income • Structure: equity, reinvested earnings, inter-company debt • Market value
Interpreting FDI statistics • Aggregate BOP data • Detailed data for FDI statistics • By partner country • By industry classification • Importance of ultimate destination • By partner country • By industry classification • Pass-through funds and capital in transit
Most frequently asked questions • What are the relations between FDI transactions, positions (stocks) and income? • How to Interpret negative values? • What explain large data revisions? • Which criteria for classifying FDI by economic activity? • What is the role of capital in transit and/or passing throughSPEs? • What degree of complementarity of FDI & AMNE statistics? • What explainsdiscrepancies in the FDI data provided by international organisations
User Expectations To analyse: • FDI trends and developments • Attractiveness of the domestic economy as an investment location • Opportunities and challenges when domestic enterprises move offshore • “Unwelcome” mergers and acquisitions, strategic sectors and national champions • Investment for development: FDI from the OECD area to poorer countries
Do we meet user needs? FDI statistics are expected to provide within the revised framework : • In-depth information about partner countries • Detailed equity investment data • “Real” investment as opposed to “paper transactions” • Special purpose entities.
Do we meet user needs? Data needs which require future work: • New forms of corporate linkups, eg • Strategic alliances • Joint ventures • Transfer of know-how • Activities of MNEs • Etc • How to ensure consistency with FDI statistics?
Thank you. Ayse Bertrand Manager, International Investment Statistics Investment Division Directorate for Financial and Enterprise Affairs Tel: 33 1 45 24 91 24 Fax: 33 1 45 24 13 34 E-mail: ayse.bertrand@oecd.org