Publication:
What to Do When Foreign Direct Investment Is Not Direct or Foreign: FDI Round Tripping

Simple item page
dc.contributor.authorAykut, Dilek
dc.contributor.authorSanghi, Apurva
dc.contributor.authorKosmidou, Gina
dc.date.accessioned2017-05-04T19:10:26Z
dc.date.available2017-05-04T19:10:26Z
dc.date.issued2017-04
dc.description.abstractAs globalization has intensified, multinational enterprises' investments have become a sophisticated set of financial transactions that are difficult to monitor and classify by the home and host countries. In some cases, what is classified as foreign direct investment is rather "indirect foreign direct investment," channeled through a third country. Indirect flows have increased significantly in recent years, now accounting for almost 30 percent of global foreign direct investment flows. Indirect foreign direct investment flows also capture the flow of domestic funds channeled through offshore centers back to the local economy in the form of direct investment, also known as "foreign direct investment round tripping." These investments do not offer the benefits of typical foreign direct investment, and may lead to tax revenue and welfare losses. Round tripping is mostly channeled through offshore financial or transshipping centers. In most cases, domestic companies round trip their investments to benefit from preferential treatments reserved for certain countries and their firms. The most important policy measure to reduce round tripping activity and mitigate its impact is to improve the business environment for all firms; this can foster domestic and foreign investment, and may, to some extent, also curb foreign direct investment round tripping. Nevertheless, countries also need to adapt to the new playing field for foreign direct investment, and recognize the trade-offs of their national policies on capital flows. National policy measures must be complemented by international actions. At the same time, all indirect foreign direct investment flows should be closely monitored, something that is best conducted in coordination with international partners.en
dc.identifierhttp://documents.worldbank.org/curated/en/319451493385113949/What-to-do-when-foreign-direct-investment-is-not-direct-or-foreign-FDI-round-tripping
dc.identifier.doi10.1596/1813-9450-8046
dc.identifier.urihttps://hdl.handle.net/10986/26498
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8046
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectFDI
dc.subjectDFI
dc.subjectINVESTMENT
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectBILATERAL INVESTMENT TREATY
dc.subjectDISPUTE SETTLEMENT
dc.subjectOFFSHORE FINANCIAL CENTER
dc.subjectSPECIAL PURPOSE ENTERPRISE
dc.subjectGLOBALIZATION
dc.subjectCAPITAL FLOWS
dc.subjectARBITRATION
dc.subjectMULTINATIONAL CORPORATIONS
dc.subjectMULTINATIONAL ENTERPRISES
dc.subjectINDIRECT INVESTMENT
dc.subjectTRANSSHIPPING
dc.titleWhat to Do When Foreign Direct Investment Is Not Direct or Foreignen
dc.title.subtitleFDI Round Trippingen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleWhat to Do When Foreign Direct Investment Is Not Direct or Foreign: FDI Round Tripping
okr.date.disclosure2017-04-28
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/319451493385113949/What-to-do-when-foreign-direct-investment-is-not-direct-or-foreign-FDI-round-tripping
okr.guid319451493385113949
okr.identifier.doi10.1596/1813-9450-8046
okr.identifier.doihttps://doi.org/10.1596/1813-9450-8046
okr.identifier.externaldocumentum090224b084b18241_1_0
okr.identifier.internaldocumentum27407965
okr.identifier.reportWPS8046
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/319451493385113949/pdf/WPS8046.pdfen
okr.statistics.combined7687
okr.statistics.dr319451493385113949
okr.statistics.drstats6185
okr.topicFinance and Financial Sector Development::Capital Markets and Capital Flows
okr.topicFinance and Financial Sector Development::International Financial Markets
okr.topicInternational Economics and Trade::Capital Flows
okr.topicInternational Economics and Trade::Foreign Direct Investment
okr.topicMacroeconomics and Economic Growth::Tax Havens
okr.unitMacroeconomics and Fiscal Management Global Practice Group
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
WPS8046.pdf
Size:
749.88 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
WPS8046.txt
Size:
79.21 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers