World Investment Report 2016

Investor Nationality - Policy Challenges

image of World Investment Report 2016
The World Investment Report series provides the latest data and analysis foreign direct investment (FDI) and other activities of transnational corporations, as well as the policies to regulate them at the national and international levels. It aims to analyse the cross-border activities of translational corporations and related policy measures with a view to helping policymakers formulate appropriate policy responses. The special theme of the 2016 Report examines the ownership of multinational enterprises and the control of affiliates, analyzing related key and emerging policy issues. These include entry conditions for foreign investors and treatment of established investment, as well as investment promotion and facilitation. Bringing together an innovative analysis of complex multinational ownership structures and relevant policy practices, the focus of the report is on the effectiveness of existing policies for distinguishing between "domestic" and "foreign" companies in a globalized economy. The report provides policymakers a new framework for handling ownership issues in 21st century investment policymaking.



Investor nationality: Policy challenges

Firms, and especially affiliates of multinational enterprises (MNEs), are often controlled through hierarchical webs of ownership involving a multitude of entities. More than 40 per cent of foreign affiliates are owned through complex vertical chains with multiple cross-border links involving on average three jurisdictions. Corporate nationality, and with it the nationality of investors in and owners of foreign affiliates, is becoming increasingly blurred.


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