Defining and Measuring the Location of FDI Output
AbstractThe standard measures of flows and stocks of FDI view FDI as a financial flow and its accumulation as a stock, but most uses of FDI data require measures of employment, payrolls, capital inputs, and output from FDI. Judging by data for the United States, the flow and stock data provide rough approximations to country distributions of FDI sources and destinations, but are poor approximations to industry distributions of FDI and to changes over time in country and industry distributions. One important reason for the poor match between the two types of measures is that more and more of production is the output from intangible and financial assets, the location of which is determined by the firm itself, and not easily subject to outside verification. That development is combined with the increasing use of holding companies and chains of ownership to reduce tax burdens on the firms without necessarily altering the physical location of inputs or production. These developments have drawn the attention of tax authorities and led to some proposals that would reduce firms' ability to manipulate the location of assets and profits. However, these maneuvers also lead to ambiguities in the meaning of economic measures, such as the balance of payments and national product. The effects on economic measurements, which may influence many types of economic policy, have been submerged in the concern for tax revenues.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12996.
Date of creation: Mar 2007
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-09 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mihir A. Desai & C. Fritz Foley & James R. Hines Jr., 2002. "Chains of Ownership, Regional Tax Competition, and Foreign Direct Investment," NBER Working Papers 9224, National Bureau of Economic Research, Inc.
- James R. Hines Jr., 2004.
"Do Tax Havens Flourish?,"
NBER Working Papers
10936, National Bureau of Economic Research, Inc.
- Markusen, James R., 2002.
"Multinational Firms and the Theory of International Trade,"
8380, University Library of Munich, Germany.
- James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262633078, December.
- Fuest, Clemens & Hemmelgarn, Thomas & Ramb, Fred, 2006. "How would formula apportionment in the EU affect the distribution and the size of the corporate tax base? An analysis based on German multinationals," Discussion Paper Series 1: Economic Studies 2006,20, Deutsche Bundesbank, Research Centre.
- Jinjarak, Yothin, 2007. "Foreign direct investment and macroeconomic risk," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 509-519, September.
- Beugelsdijk, S. & Hennart, J.M.A. & Slangen, A.H.L. & Smeets, R., 2010.
"Why and how FDI stocks are a biased measure of MNE affiliate activity,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-3982853, Tilburg University.
- Sjoerd Beugelsdijk & Jean-Fran�ois Hennart & Arjen Slangen & Roger Smeets, 2010. "Why and how FDI stocks are a biased measure of MNE affiliate activity," Journal of International Business Studies, Palgrave Macmillan, vol. 41(9), pages 1444-1459, December.
- K. Gonchar & Philipp Marek, 2013. "Natural-resource or Market-seeking FDI in Russia? An Empirical Study of Locational Factors Affecting the Regional Distribution of FDI Entries," IWH Discussion Papers, Halle Institute for Economic Research 3, Halle Institute for Economic Research.
- Torfinn Harding, Torfinn; Javorcik, Beata S., 2010.
"Roll out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows,"
CAGE Online Working Paper Series, Competitive Advantage in the Global Economy (CAGE)
18, Competitive Advantage in the Global Economy (CAGE).
- Torfinn Harding & Beata S. Javorcik, 2011. "Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 121(557), pages 1445-1476, December.
- Céline Azémar, 2010.
"International corporate taxation and U.S. multinationals' behaviour: an integrated approach,"
Canadian Journal of Economics, Canadian Economics Association,
Canadian Economics Association, vol. 43(1), pages 232-253, February.
- Céline Azémar, 2008. "International corporate taxation and US multinationals' behaviour: an integrated approach," Working Papers, Business School - Economics, University of Glasgow 2009_03, Business School - Economics, University of Glasgow.
- Torfinn Harding & Beata Smarzynska Javorcik, 2007.
"Developing economies and international investors. Do investment promotion agencies bring them together?,"
Discussion Papers, Research Department of Statistics Norway
513, Research Department of Statistics Norway.
- Harding, Torfinn & Javorcik, Beata Smarzynska, 2007. "Developing economies and international investors : do investment promotion agencies bring them together ?," Policy Research Working Paper Series 4339, The World Bank.
- Harding, Torfinn & Smarzynska Javorcik, Beata, 2007. "Developing Economies and International Investors: Do Investment Promotion Agencies Bring Them Together?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6418, C.E.P.R. Discussion Papers.
- Azemar, Celine & Darby, Julia & Desbordes, Rodolphe & Wooton, Ian, 2012. "Market Familiarity and the Location of South and North MNEs," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2012-15, Scottish Institute for Research in Economics (SIRE).
- Benjamin Bridgman & Michael Maio & James A. Schmitz, Jr., 2012. "What ever happened to the Puerto Rican sugar manufacturing industry?," Staff Report, Federal Reserve Bank of Minneapolis 477, Federal Reserve Bank of Minneapolis.
- Celine Azemar & Julia Darby & Rodolphe Desbordes & Ian Wooton, 2012.
"Market Familiarity and the Location of South and North MNEs,"
Economics and Politics, Wiley Blackwell,
Wiley Blackwell, vol. 24(3), pages 307-345, November.
- Celine Azemar & Julia Darby & Rodolphe Desbordes & Ian Wooton, 2012. "Market familiarity and the location of South and North MNEs," Working Papers, Business School - Economics, University of Glasgow 2012_05, Business School - Economics, University of Glasgow.
- Ksenia Gonchar & Philipp Marek, 2013. "Natural-resource or market-seeking FDI in Russia? An empirical study of locational factors affecting the regional distribution of FDI entries," HSE Working papers, National Research University Higher School of Economics WP BRP 26/EC/2013, National Research University Higher School of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.