Working paper: What is real and what is not in the global FDI network?
Working paper - December 2019 - No. 148
Macro statistics on foreign direct investment (FDI) are blurred by oﬀshore centers with enormous inward and outward investment positions. This paper uses several new data sources to estimate the global FDI network while disentangling real investment and phantom investment and allocating real investment to ultimate investor economies. We ﬁnd that phantom investment into corporate shells with no substance and no real links to the local economy may account for almost 40 percent of global FDI.