Revaluing the Capital Stock of International Production

    Publikation: Wissenschaftliche FachzeitschriftOriginalbeitrag in FachzeitschriftBegutachtung

    Abstract

    The objective of the paper is to report on the effect of revaluing foreign direct investment (FDI) at replacement values as a means of estimating the importance of international production. A perpetual inventory model is used to revalue FDI stocks to constant and current values. The empirical results show the extent of the revaluation of inward and outward FDI stocks of the US, the UK, Germany, and Japan. Meaningful comparisons across countries require the translation of FDI stocks in a common currency and at constant prices and exchange rates. Such comparisons reveal that compared to other macroeconomic indicators, FDI has been undervalued.
    OriginalspracheEnglisch
    FachzeitschriftInternational Business Review
    PublikationsstatusVeröffentlicht - 2004

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