Wh What can can we tell with we tell with to todays s FD FDI - - PowerPoint PPT Presentation

Wh What can can we tell with we tell with to today’s ’s FD FDI data?

Premila Nazareth Satyanand

Founder, Foreigndirectinvestment.in and Nonresident Senior Fellow, NCAER

EMSD Conference, New York, 19-20 April

FD FDI Inflows FD FDI Inward Stock Annual Total 98% 96% Country break-down 72% 76% Industry break-down 72% 73% FD FDI Outflows FD FDI Outward Stock Annual Total 80% 78% Country break-down 62% 63% Industry break-down 62% 63%

Source: NCAER, Enhancing the Scope and Quality of Indian FDI Statistics, 2016

Results of NCAER website survey ( % of 45 G-20, EU and OECD countries reporting the data below)

Wo World De Developed co countries De Developing co countries

Number of countries in category

155 37 102

Inward flows by country break-down

126 37 73

Inward flows by industry break-down

122 36 71

Inward stock by country break-down

131 37 78

Inward stock by industry break-down

101 37 55

Outward flows by country break-down

68 37 20

Outward flows by industry break-down

63 36 20

Outward stock by country break-down

97 37 48

Outward stock by industry break-down

61 37 20

Source: Unpublished UNCTAD data

Number of countries reporting the following data (2016 or latest year available)

As Asia & Oc Oceani nia La Latin America ca & th the Caribbean Af Afri rica So South-Eas East Eu Europe & & CIS

Number of countries in category

37 32 33 16

Inward flows by country break-down

27 25 21 16

Inward flows by industry break- down

29 21 21 15

Inward stock by country break-down

32 19 27 16

Inward stock by industry break- down

25 12 18 9

Outward flows by country break- down

11 5 4 11

Outward flows by industry break- down

11 6 3 7

Outward stock by country break- down

20 12 16 12

Outward stock by industry break- down

13 4 3 4

Source: Unpublished UNCTAD data

Number of countries reporting the following data (2016 or latest year available)

EU EU-FA FATS UN UNCTAD MA MANUAL OE OECD BD-4 MS MSITS

1 Number of branches and subsidiaries Number of enterprises Number of enterprises 2 Turnover Sales/turnover Sales (turnover) and/or output Sales (turnover) and/or output 3 Production value Output 4 Value-added at factor cost Value-added Value-added Value-added 5 Exports/imports of goods/services Exports and imports Exports/imports of goods/services Exports/imports of goods/services 6 Total purchases of goods and services 7 Purchases of goods and services for resale in the same condition as received 8 Personnel costs Employee compensation Compensation of employees 9 Gross investment in tangible goods 10 Number of persons employed/ number of employees Employment Employment Employment 11 Total intra-mural R&D expenditure R&D expenditures R&D expenditures 12 Total number of R&D personnel Employment in R&D 13 Intra-group exports and imports of goods and services Intra-firm trade 14 Net operating surplus Net operating surplus 15 Earnings (distributed & reinvested) 16 Assets Assets 17 Net worth Net worth 18 Technology payments (royalties, fees) 19 Gross fixed capital formation 20 Taxes on income Taxes on income

Source: NCAER, Enhancing the Scope and Quality of Indian FDI Statistics, 2016

Source: Unpublished UNCTAD data

Number of countries reporting the following data (2015 or latest year available)

Source: NCAER, Enhancing the Scope and Quality of Indian FDI Statistics, adapted from the Bureau of Economic Analysis website

List of FATS tables available on the Bureau of Economic Analysis website

Se Securit itie ies and d Exchange Board d of India dia (2012): Busin iness Respo ponsibilit ibility Re Reports

9 Bu Business Responsibility principles, adherence to which must be be repo ported d in de detail in Annual Repo port

1.

Ethics, transparency and accountability

2.

Safe and environmentally-sustainable good and services

3.

Employee well-being

4.

Sensitivity to stakeholders, especially disadvantaged

5.

Protect human rights

6.

Respect, protect, and restore the environment

7.

Influence policy responsibly

8.

Inclusive growth and development

9.

Provide value to customers and consumers

}

Source: Tata Motors Annual Report FY 2016-2017, Pg 96

}

Source: Hindalco Industries Annual Report FY 2016-2017, Pg 46

St Studyin ing ESG SG Impact usin ing the FDI St Statis istic ics Rou

• ute…

} Macrodata is rudimentary, especially in the developing world } Current global standards for Foreign Affiliate Statistics focus

• n the financial, not the societal, bottom line

} Micro-data on individual firms is not easy to access

St Studyin ing ESG SG Impact usin ing the Annual l Repor

• rt Rou
• ute…

} No publicly-available, comprehensive ‘frame’ of outward

foreign direct investors

} Operations data for parent and overseas subsidiaries is

primarily financial

} Stepped-up ESG reporting is on parent company operations

in the domestic market

New New sta standards s ar are e need eeded ed at at both lev evel els