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Challenges of measuring and analyzing foreign direct investment – theory vs. practice

Authors

Agnieszka Kłysik-Uryszek Uniwersytet Łódzki, Wydział Ekonomiczno-Socjologiczny, Katedra Wymiany Międzynarodowej https://orcid.org/0000-0001-6876-8751
Anetta Kuna-Marszałek Uniwersytet Łódzki, Wydział Ekonomiczno-Socjologiczny, Katedra Wymiany Międzynarodowej https://orcid.org/0000-0001-5687-7272

DOI:

https://doi.org/10.18778/2082-4440.43.01

Keywords:

foreign direct investment, internationalization, capital flows, foreign investor, foreign entity, definition inconsistencies, emerging economies, Poland

Abstract

Foreign direct investment (FDI) is widely analysed in the academic literature. The available definitions and classifications describe the phenomenon on many levels, but the available statistical data often need to harmonise with the theoretical approach. This makes a detailed analysis of the actual processes difficult, if possible. Dynamic economic changes lead to the constant emergence of new relationships and organisational structures in multinational companies, which exist simultaneously with well-defined and recognisable forms of FDI but need to be properly tracked by statistical institutions.

The article is of an overview nature. It aims to present the inaccuracies and inconsistencies in the field of FDI research in both the definitional and classi- fication spheres and the statistical sphere. The article discusses various concepts for measuring and interpreting FDI, aiming to provide researchers with valuable guidelines for dealing with methodological problems. The basic conclusion is that the information provided by official statistics needs to be adequate and consistent, that the analysis of the degree of FDI involvement of firms (especially from emerging markets) carries risks, and that its results should be treated cautiously. A Polish public statistics case study was used to present the main inconsistencies and problems.

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Published

2023-09-30

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2024-06-19 (2)
2023-09-30 (1)

Issue

No. 43 (2023)

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Articles

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How to Cite

Kłysik-Uryszek, Agnieszka, and Anetta Kuna-Marszałek. 2023. “Challenges of Measuring and Analyzing Foreign Direct Investment – Theory Vs. Practice”. Ekonomia Międzynarodowa (International Economics), no. 43 (September): 5-21. https://doi.org/10.18778/2082-4440.43.01.