Bericht

FDI stocks are a biased measure of foreign affiliate activity

Researchers often call the value added (VA) in a host country by firms based in another country foreign direct investment (FDI) and use FDI stocks and flows from a country's balance of payments to measure it. Because FDI stocks and flows only measure the financial flows between parents and their foreign affiliates, excluding locally raised funds, and because they omit the contribution of local labor to affiliate VA, they systematically underestimate that VA in more developed countries and thus are a biased measure of multinational activity.

Language
Englisch

Bibliographic citation
Series: Columbia FDI Perspectives ; No. 45

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Beugelsdijk, Sjoerd
Hennart, Jean-François
Slangen, Arjen
Smeets, Roger
Event
Veröffentlichung
(who)
Columbia University, Vale Columbia Center on Sustainable International Investment (VCC)
(where)
New York, NY
(when)
2011

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Bericht

Associated

  • Beugelsdijk, Sjoerd
  • Hennart, Jean-François
  • Slangen, Arjen
  • Smeets, Roger
  • Columbia University, Vale Columbia Center on Sustainable International Investment (VCC)

Time of origin

  • 2011

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