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FDI flows and reinvested earnings: statistical measurement, perceptions and economic interpretation

Oblath, Gábor (2017) FDI flows and reinvested earnings: statistical measurement, perceptions and economic interpretation. Hungarian Statistical Review, 95 (K21). pp. 48-77. ISSN 0039-0690

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Abstract

Using Hungarian data for the period 2008–2014 as an example, the study examines the effects of two internationally endorsed methodological revisions affecting the interpretation and quantification of RE (reinvested earnings). The empirical importance of the revision introduced in 2008 is attested by the fact that while the present methodology indicates a net FDI (foreign direct investment) inflow of 10.5 billion euros, the one applied until 2007 would suggest a cumulative net outflow of 5.6 billion euros from Hungary in the period 2008–2014. The huge difference between the two is hidden in statistics on the IIP (international investment position) of the country, which is beyond the focus of most analysts. Although the revisions resulted in the congruence of statistical data with economic concepts of FDI income and RE, they may have become less expressive of the decisions and behaviour of foreign investors. In addition, the revisions lead to breaks in national time series and raise questions regarding comparability of data across countries. For comparisons over time and between countries, the author recommends data on changes in (net) FDI stocks, unaffected by the methodological revisions.

Item Type: Article
Subjects: H Social Sciences / társadalomtudományok > HA Statistics / statisztika
SWORD Depositor: MTMT SWORD
Depositing User: Erika Bilicsi
Date Deposited: 20 Dec 2017 08:16
Last Modified: 10 Mar 2022 12:21
URI: http://real.mtak.hu/id/eprint/55633

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