Abstract
The review of the IMF Working Paper “The Global FDI Network: Searching for Ultimate Investors” provides a detailed overview of three types of problems identified by the authors when using international institutions’ data on foreign direct investment as a proxy for real economic integration between economies: bilateral asymmetries between inward and outward FDI for most country pairs; FDI overestimation caused by special purpose entities that do not carry out real economic activities; and complexities of determining ultimate investing economies. In addition, the review describes an approach proposed by the IMF experts to construct a global FDI network eliminating these problems, as well as FDI estimates within the network.
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