Not all foreign direct investment is foreign: the extent of round-tripping

Maria Borga

No 172, Columbia FDI Perspectives from Columbia University, Columbia Center on Sustainable Investment (CCSI)

Abstract: Some foreign investment represents domestic funds that have been sent abroad before returning to the domestic economy, called round-tripping. Traditional FDI statistics do not distinguish round-tripping from genuine foreign investment. This Perspective argues for countries to produce statistics by ultimate investing country to identify the round-tripping in their economies.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:colfdi:172

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