Measuring investment globalisation: Are FDI statistics still a useful metric? - Peter J Buckley - 2014 FDI Statistics Workshop

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Peter J Buckley's presentation at the FDI Statistics Workshop (20 March 2014) during the session on whether or not FDI statisics are still a useful metric when measuring investment globalisation.

Find out more at http://www.oecd.org/daf/inv/measuring-globalisation-fdi-statistics-workshop-2014.htm

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Measuring investment globalisation: Are FDI statistics still a useful metric? - Peter J Buckley - 2014 FDI Statistics Workshop

  1. 1. Leeds University Business School Measuring Investment Globalisation: Are FDI statistics still a useful metric? OECD FDI Statistics Forum Measuring globalisation: better data for better policies OECD Conference Centre, Paris 20 March 2014 Professor Peter J Buckley Centre for International Business University of Leeds
  2. 2. Leeds University Business School What do we want to know? 1. Control (of decision making). 2. FDI and its near neighbours in MNE network (‘Global Factory’). 3. Knowledge/Intangible Assets. (Theory Driven) FDI is a financial flow loaded with other flows – control and knowledge included.
  3. 3. Leeds University Business School Control 10% equity – “passthrough of control”. Round-tripping. Ultimate control linked to ultimate destination... and the full network?
  4. 4. Leeds University Business School Network: FDI and its near neighbours ‘Global Factory’ – Non-equity modes and FDI linked entities. Control (Power) of MNE not fully captured by FDI because of use of non-equity modes of international operation (NEMs). Use of licences: Contracts Minority joint ventures Technology agreements etc., etc. It is arguable that control by contract is more rigorous than by ownership.
  5. 5. Leeds University Business School Knowledge – Intangible Assets Externalisation of Operations Internalisation of knowledge (note profit from intangibles) Control of knowledge, not financial capital, is critical and FDI statistics are a poor proxy for this.

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