FDI

Doug Henwood dhenwood at panix.com
Mon Mar 15 08:24:58 PST 1999


Barbara Laurence wrote:


>Doug, I don't think your data distinguish between foreign direct investment
>that are merely M and A's, contrasted with the FDI that consist of the
>construction or addition or modification of real productive capacity. I'm
>speaking of the latter. I see the former mainly as a financial, property
>transfer transaction that may be motivated my many
>things..........

You're right, but they're the best numbers we've got on a timely basis. The purchase of more than 10% of the shares of an existing company counts as FDI rather than portfolio investment. The BEA publishes estimates of capital expenditures of U.S. MNCs abroad and foreign MNCs in the U.S., though with a delay of two years or more. The data on U.S. MNCs abroad is in the September 1998 issue of the Survey of Current Business, and the data on foreign MNCs in the U.S. is in the June 1998 issue. There's also data on the BEA's website, <http://www.bea.doc.gov>.

Doug



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