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More useful FDI statistics for policy makers

Gerrit van den Dool

De Nederlandsche Bank

WGIIS, Paris

20 March 2014

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Inward FDI: Attractiveness? Outward FDI: Expansion

abroad?

BD4 major step forward: clear definitions, many new areas covered, linkages to AMNE statistics, distinction of SPEs, role for headquarters

BUT Are we be better serving policy makers now?

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Attractiveness? Be aware of capital flowing uphill

Put aside capital flowing uphill (20), rather than sticking to Balance of Payments constrains

NL: net outflow 21 understatement of expansion abroad

UK: net inflow 21 understatement of attractiveness

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Current practice: overstatements turned into in understatements. Think it over?

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Two FDI headline figures, a way out?

FDI statistics now statistics in its own right Freedom to select/omit FDI building blocks

Economic activity

Financial activity

Exclude

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“It’s complicated” - Make users aware that figures are baskets of minusses and plusses

Some homework:

“Analyze this”

Clear communciation to users of paramount importance to make BD4 a success!