Monthly & Quarterly Foreign Direct Investment (FDI) Data

The source of foreign direct investment (FDI) data is explained. The availability and quality of monthly and quarterly data are discussed along with possible data souces.

Hi everyone um this video is just to respond to some feedback and questions about um foreign direct investment data so first of all i would like to thank you for your feedback and for your questions foreign direct investment is very important topic and data about fdi is a bit tricky um in previous video maybe you managed to see how to get um data for foreign

Direct investment fdi4 over the years annually questions coming asking me how to get data for foreign direct investment quarterly or monthly so before we start talking about this i want you to to highlight very important issue about foreign diet investment data so find out investment data is sometimes it’s not uh pure from errors so we need to understand that um

Find out investment data um the best data you can get that for the investment is annually um you still can get uh quarterly data uh but you need to check you cannot get like countries like if you want to do time series or analysis and you want to get let’s say find out investment data for uh 30 50 100 countries and you say oh here we go we can get the data from

One source and then um we can run the data no you you will you will you will come into problems because annually data yes you can do that as i said but for quarterly data is difficult because not all countries are reporting foreign investment data on a quarterly basis yeah monthly israeli so not all countries are reporting monthly foreign direct investment data

So i would say just forget about monthly data i’m going to explain why um the best quality data you can get as i said annual data you can get quarterly data but it depends on which countries so first of all let’s start with some information background about uh foreign investment to understand why uh reason and the source of the data so foreign direct investment

As a definition according to anchored so is an investment reflecting lasting interest and control by a foreign direct investor resident in one economy in an enterprise resident in another economy so foreign affiliate okay so um fdi influes comprised capital provided by foreign direct investment to a friend affiliate or capital received by foreign direct investment

From a foreign affluent now if we’re talking about source of capital or investment foreign investment so in this case the source for finding the information about these uh um transfer or let’s say transactions foreign doctor investment capital transfer to another country the source of this data is about international financial exchanges so in this case we’re

Talking about the balance of payment so the source of data for foreign direct investment is a balance of payment and which part of the balance of payment so we have um the part about financial transaction going to show you that uh but actually so have that definition in mind so defining understanding definition of fine direct investment will allow you to look

For what you need in terms of foreign direct investment data so this is definition of foreign direct investment we know it’s about foreign transactions or transfer of money from one transfer of capital from one country to another country so of course we’re talking about um certain uh percentage of transfer so we going to show you that let’s go to okay there’s

Another definition for um fondant investment so now talking about um oecd so organization for economic cooperation and development so at this definition for fdi so foreign investment flows record value of cross-border transactions related to direct investment during a given period of time usually a quarter all year so that’s that’s basically the main thing

About getting the accurate what i say the more right understanding foreign investment data so we’re talking about a balance of payment showing transactions with between countries and that is done on quarterly basis and annually basis so i would say for developed countries most of developed countries will find the data quarterly data for developing countries

Some countries they will do only annually some they will have an issue in reporting so you need to all the time seek the sources of uh find out investment from that specific country so sometimes you will have a set of data for let’s say one um let’s say for 100 countries or 50 countries and then you will go to find some missing data in this case you need to be

Careful here getting data from different sources is sometimes tricky and may bias your data now because data is a check to talking about um anchored we’re talking about uh world bank or any other sources of data so in this case data is checked and they they’re trying to make sure that data is valid now you can get data on countries of interest by visiting let’s

Say um data center the bureau of statistics for that country so in this case you try to get the best the best shop for for getting the data from that country now um show you an example here so um for um oe cd country so we go we’re talking about 36 members for these countries you will find uh foreign direct investment data quarterly available so they will show

You here and they tell you aggregate fdi statistics are updated quarterly four months after the end of the reference quarter and revisions to earlier periods so all the time there will be revisions for earlier periods and they’ll show you here quarter one two three and they tell you the months yeah so through oecd so you’ll be able to get quarterly data for only

The members countries so talking about 36 countries so you’ll be able to get quarterly data for fdr for 36 countries i’ll i’ll take you to another place if you’re interested in getting foreign direct investment data for the united kingdom so you’ll be able to do so we have a database for foreign data investment data we have office of national statistics ons so if

We’re looking at the source of foreign investment data talk about balance of payment the balance of payment for the uk is reported quarterly so if you click on let’s say this quarter yeah 2020 quarter three so you’ll have um excel sheet in this excel sheet you’ll be able to see the balance payment so balance frames they show your current account capital account

And financial account in financial account we’ll see something here is dirt investment and in that investment they’ll tell you the latest quarter and they will tell you also comparison uh highest record unless record also in the excel sheet you’ll be able to see uh table one two three and saw abc and so on so in these tables you’ll be able to access yearly data

Based on quotas so of course you need to go again to financial account and this is for diet investment yeah quarters so this is uh um as i said it’s another source as i said most of uh let’s say um a little bit this way like um countries where they are more interested in phoned out investment there will be able to reduce data on monthly data monthly basis but as

I said not all countries that would be able to do that most of european countries um as i said you have there will be reporting balance of payment quarterly basis so you’ll find you’ll be lucky finding fdi on quarterly basis uh what other sources you could use so you can as i said use oecd for uh database to get quarterly data or for that investment you’ll be able

Also to get um so this is this is the world bank database uh you can get uh annually data only no quarterly no monthly this is world bank database uh you can get uh from uh eurostat so european statistics you’ll be able to get uh quarterly data of course that investment as a percentage of gdp so you can get it that there quarterly yeah so this is database you

Can get it quarterly for um uh european countries yeah so um i hope that has answered all your questions about uh getting data quarterly or monthly as i said uh let me just um sum up the best data you can get about phone diet investment yearly because this data is accurate yeah and we’re saying this checked yeah um you can get quarterly for european countries

Or let’s say let’s let’s put it this way developed countries when i say developed countries with the databases where they keep databases reporting balance of payments on quarterly basis you will find uh data for foreign data investment quarterly basis yeah now you have issues with developing countries where even annually data is not reported so in this case he

The best uh chance for you is just to go do that individually and maybe inquire about find out investment data so i would say uh get data from that investment data from one source so in this case uh that relatable source so in this case you can get the data for your time series uh analysis you doing and in this case you’ll be able to get if you have missing

Data so in this case you need to see how far and what countries we we’re talking about missing data so in this case you need to find solutions or check solutions for missing data missing information if you interested in specific particular con region or country in this case i would say definitely just try to get the data from the source of this data balance of

Payment uh balance of payment of these countries all at that that region it’s good sometimes to if if you work as sensitive and requires high level of quality data in this case you can compare different sources of foreign art investment data i hope this video is beneficial and let me know if you have any questions or any suggestions thank you so much

Transcribed from video
Monthly & Quarterly Foreign Direct Investment (FDI) Data By Dr Al-Habash