Organisation for Economic Co-operation and Development

2003

© 2003 International Monetary Fund

Cataloging-in-Publication Data

Foreign direct investment statistics: how countries measure FDI 2001—Washington, D.C.:

International Monetary Fund: OECD, 2003.

• p. cm.

• ISBN 9781589062207

1. Investments, Foreign—Statistical methods. I. International Monetary Fund.

II. Organisation for Economic Co-operation and Development.

HG4538.F56 2003

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Contents

• Preface

• Abbreviations

• 1. Background

  • The 1997 SIMSDI Survey

  • The 2001 SIMSDI Update

• 2. Key Findings of the 2001 SIMSDI Update

  • Areas of Significant Improvement Since the 1997 SIMSDI Survey

    • Data Availability

    • Data Coverage

  • Areas Where More Than 75 Percent of the Countries Surveyed Follow the Applicable International Standards

  • Areas Where, Despite Improvements, the Majority of the Countries Surveyed Do Not Yet Follow the Applicable International Standards

• 3. Data

  • Data Availability

    • Data Reported to the International Organizations

    • Periodicity of the Disseminated FDI Transactions Data

    • Periodicity of the Disseminated FDI Position Data

    • Timeliness of the Disseminated FDI Transactions Data

    • Timeliness of the Disseminated FDI Position Data

  • Data Sources

    • Sources for the FDI Transactions Data

    • Sources for the FDI Position Data

  • Geographic and Industrial Classifications

    • Availability of Geographic Breakdowns of FDI Statistics

    • Principles Used for the Geographic Allocation of FDI Statistics

    • Availability of Industrial Breakdowns of FDI Statistics

    • Basis for Industrial Allocation of FDI Statistics

• 4. Definition of Direct Investment Enterprises and Direct Investors

  • Identification of Direct Investment Enterprises

  • Identification of Direct Investors

  • Treatment of Indirectly Owned Direct Investment Enterprises

• 5. Direct Investment Income

  • Measurement of Direct Investment Earnings

  • Elements of Direct Investment Income

  • Time of Recording of Direct Investment Income

  • Items Included in the Data on Direct Investment Income on Debt (Interest)

• 6. Direct Investment Capital

  • Components of Direct Investment Capital

    • Items Included in Equity Capital

    • Items Included in Other Capital

    • Transactions Between Affiliated Banks and Between Affiliated Financial Intermediaries

  • Reverse Investment

    • Treatment of Reverse Investment When the FDI Relationship Is in One Direction Only

    • Treatment of Reverse Investment When Two FDI Relationships Have Been Established

• 7. Valuation of Assets and Liabilities in FDI Position Data

• 8. Special Cases

  • Quasi-Corporations: Construction Enterprises and Operation of Mobile Equipment

  • Nonresident Ownership of Land and Buildings

  • Activities of Offshore Enterprises

  • Activities of Special Purpose Entities (SPEs)

  • Expenditure on Natural Resources Exploration

• Appendices

  • I. 2001 SIMSDI Update: Cross-Country Comparison Tables

    • Conventions Used

    • List of Tables

  • II. Foreign Direct Investment Terms and Definitions

• Box

  • 2.1. Highlights of the 2001 SIMSDI Update

• Tables

  • 3.1. Data Reported to International Organizations

  • 3.2. Periodicity of the Most Timely and Most Comprehensive Equity Capital Transactions Data for Direct Investment in the Reporting Economy (Inward FDI)

  • 3.3. Periodicity of the Most Timely and Most Comprehensive Equity Capital and Reinvested Earnings Position Data for Direct Investment in the Reporting Economy (Inward FDI)

  • 3.4. Timeliness of the Most Timely and Most Comprehensive Equity Capital Transactions Data for Direct Investment in the Reporting Economy (Inward FDI)

  • 3.5. Timeliness of the Most Timely and Most Comprehensive Equity Capital and Reinvested Earnings Position Data for Direct Investment in the Reporting Economy (Inward FDI)

  • 3.6. Primary Data Sources for the Most Timely FDI Transactions Data

  • 3.7. Primary Data Sources for the Most Comprehensive FDI Transactions Data

  • 3.8. Primary Data Sources for the Most Timely FDI Position Data

  • 3.9. Primary Data Sources for the Most Comprehensive FDI Position Data

  • 3.10. Availability of Geographic Breakdowns of FDI Income, Financial Flows, and Position Data

  • 3.11. Geographic Breakdowns: Principles Used for Allocating FDI Transactions Data by Country

  • 3.12. Geographic Breakdowns: Basis Used for Allocating FDI Position Data by Country

  • 3.13. Availability of Industrial Breakdowns of FDI Income, Financial Flows, and Position Data

  • 4.1. Definitions Used for Identifying Direct Investment Enterprises Resident in the Reporting Economy (Inward FDI Transactions Data)

  • 4.2. Definitions Used for Identifying Direct Investors Resident in the Reporting Economy (Outward FDI Transactions Data)

  • 4.3. Indirectly Owned Direct Investment Enterprises in the Inward FDI Transactions Data

  • 5.1. Measurement of Inward Direct Investment Earnings: Application of the Current Operating Performance Concept (COPC)

  • 5.2. Elements of Direct Investment Income Included in the Disseminated FDI Statistics

  • 5.3. Time of Recording of FDI Income

  • 5.4. Items Covered in Direct Investment Income on Debt (Interest): Inward Data

  • 6.1. Equity Capital: Items Included in the Inward FDI Transactions Data

  • 6.2. Other Capital: Items Included in the Inward FDI Transactions Data

  • 6.3. Transactions Between Affiliated Banks and Between Affiliated Financial Intermediaries

  • 6.4. Treatment of Reverse Investment Transactions When Direct Investment Enterprise Owns Less Than 10% of Its Direct Investor (FDI Relationship in One Direction Only)

  • 6.5. Treatment of Reverse Investment Transactions When Direct Investment Enterprise Owns at Least 10% of Its Direct Investor (Two FDI Relationships Established)

  • 7.1. Valuation of Equity Capital Positions

  • 8.1. Quasi-Corporations Involving Construction Enterprises and Mobile Equipment

  • 8.2. Purchase and Sale of Land and Buildings by Nonresidents

  • 8.3. Activities of Offshore Enterprises

  • 8.4. Inclusion of Activities of Special Purpose Entities (SPEs) in the FDI Transactions Data

  • 8.5. Inclusion of Expenditure on Natural Resources Exploration in the FDI Transactions Data

Preface

The increasing importance of multinational enterprises in the global economy has stimulated interest in improving the availability, the accuracy, and the coverage of foreign direct investment (FDI) statistics among policymakers, analysts, and statisticians. Foreign Direct Investment Statistics: How Countries Measure FDI shows progress in recent years in moving toward compilation in accordance with international standards that have been established by the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD).

This report also provides information on the current practices regarding the statistical measurement of FDI of 61 countries, with the aim of improving users’ understanding of the methodology applied for compiling the data.

The report is based on information obtained from the 2001 update of the joint IMF/OECD Survey of Implementation of Methodological Standards for Direct Investment (SIMSDI), which covers 30 OECD countries and 31 other IMF member countries.

The report was prepared by Ms. Marie Montanjees, a Senior Economist in the IMF’s Statistics Department, and Ms. Ayse Bertrand, Administrator in the OECD Directorate for Financial, Fiscal, and Enterprise Affairs.

Carol S. Carson

Director

Statistics Department

International Monetary Fund

William H. Witherell

Director

Financial, Fiscal, and Enterprise Affairs Directorate

Organisation for Economic Co-operation and Development

Abbreviations