TY - JOUR
T1 - Measuring multinational production with foreign direct investment statistics
T2 - A survey of challenges and recent developments
AU - Wacker, Konstantin M.
AU - Casella, Bruno
AU - Borga, Maria
N1 - Publisher Copyright:
© 2024 The Author(s). Journal of Economic Surveys published by John Wiley & Sons Ltd.
PY - 2024/9/3
Y1 - 2024/9/3
N2 - Foreign direct investment (FDI) statistics are frequently used to proxy multinational production and activities of multinational enterprises (MNEs). Yet, FDI statistics have been subject to critique because FDI is also driven by financial motives that are barely related to real production activities. In this paper, we survey recent advancements in the compilation of international FDI statistics that address those challenges. We discuss how those improved FDI statistics help to tighten the relation between FDI data and multinational production and provide guidance to applied researchers how to implement this in practice.
AB - Foreign direct investment (FDI) statistics are frequently used to proxy multinational production and activities of multinational enterprises (MNEs). Yet, FDI statistics have been subject to critique because FDI is also driven by financial motives that are barely related to real production activities. In this paper, we survey recent advancements in the compilation of international FDI statistics that address those challenges. We discuss how those improved FDI statistics help to tighten the relation between FDI data and multinational production and provide guidance to applied researchers how to implement this in practice.
KW - balance of payments
KW - foreign affiliates
KW - foreign direct investment (FDI)
KW - multinational enterprises
KW - multinational production
UR - http://www.scopus.com/inward/record.url?scp=85203017037&partnerID=8YFLogxK
U2 - 10.1111/joes.12662
DO - 10.1111/joes.12662
M3 - Article
AN - SCOPUS:85203017037
SN - 0950-0804
JO - Journal of Economic Surveys
JF - Journal of Economic Surveys
ER -