FDI in Greece & Greek FDI

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FDI in Greece & Greek FDI. Chair: Professor Kevin Featherstone Fragkiskos Filippaios, MEF Fellow Kostas Tzioumis, NBG Fellow Hellenic Observatory Seminar Series. February 12 th , 2008. Outline. General (definition, trends, determinants) FDI Inflow in Greece FDI Outflow from Greece - PowerPoint PPT Presentation

Text of FDI in Greece & Greek FDI

  • FDI in Greece & Greek FDIChair: Professor Kevin Featherstone

    Fragkiskos Filippaios, MEF Fellow Kostas Tzioumis, NBG Fellow

    Hellenic Observatory Seminar Series

    February 12th, 2008

  • OutlineGeneral (definition, trends, determinants)

    FDI Inflow in Greece

    FDI Outflow from Greece

    Assessment & policy recommendations

  • DefinitionAn investment made to acquire lasting interest in enterprises operating outside of the economy of the investor.

    Threshold of 10 per cent of equity ownership to qualify an investor as a foreign direct investor (OECD)

    Forms of investment classified as FDI are equity capital, the reinvestment of earnings and the provision of long-term and short-term intra-company loans (between parent and affiliate enterprises).

  • Global trends

    Improvements in crucial determinants of FDI: Institutions, taxation, liquidity, FX, etc.

  • Greek FDI inflows (1): A politicians view

    Chart1

    0.672

    0.52

    0.436

    0.439

    0.485

    0.447

    0.471

    0.683

    0.907

    0.752

    1.005

    1.135

    1.144

    0.977

    0.981

    1.053

    1.058

    0.984

    0.0712

    0.5619

    1.1081

    1.5894

    0.0503

    1.2752332303

    2.1014074364

    0.6065015172

    5.3634415755

    Inward FDI in Greece, 1980-2006 Flows- Billion USD (current)

    Greece ($current)

    Page2_b

    time_codecountry_codeoverall_earnmanag_rankingrankR2

    YR2003Norway16

    YR2003Sweden22

    YR2003Denmark311

    YR2003Austrial41

    YR2003Switzerland513

    YR2003Poland68

    YR2003Italy715

    YR2003Ireland83

    YR2003Finland912

    YR2003Belgium104

    YR2003Netherlands1114

    YR2003Germany125

    YR2003Portugal137

    YR2003Spain1416

    YR2003UK159

    YR2003France1610

    YR2003Greece1717

    PortugalYEARSpain

    1.6919802.8

    1.7919813.69

    1.5419824.03

    1.8619834.32

    3.3119845.12

    4.6919855.27

    2.8119866.47

    3.9919876.39

    6.3419887.69

    11.4319897.91

    13.4219909.56

    11.6719918

    7.79199210.22

    7.719938.55

    6.0719948.26

    2.6919956.28

    4.9619967.24

    8.3619977.15

    9.56199810.24

    3.55199912.35

    21.76200026.38

    20.35200117.94

    5.65200221.81

    24.6200310.83

    5.8720048.53

    10.0320057.58

    17.2420065.4

    Page2_b

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    Accounting practices and stock markets, 2004 Stock market synchronicity, annual ranking [1=best]

    Earnings management, annual ranking [1=best]

    Sample: 17 countries

    rankR2

    Norway

    Sweden

    Denmark

    Austrial

    Switzerland

    Poland

    Italy

    Ireland

    Finland

    Belgium

    Netherlands

    Germany

    Portugal

    Spain

    UK

    France

    Greece

    R2 = 18%

    FDI inward flows

    YEARGreece ($current)Greece ($current 000)YEARGreece (constant)Greece ($constant 000)Greece deflator

    19800.67267219800.67267210.00

    19810.5252019810.4762666143476.26661429591.0918254289.18

    19820.43643619820.3912823015391.28230148791.114285001811.43

    19830.43943919830.3856993587385.6993586711.138192195913.82

    19840.48548519840.4158932255415.89322554421.166164703416.62

    19850.44744719850.3734896551373.48965507221.196820297219.68

    19860.47147119860.3814346734381.43467340351.234811706523.48

    19870.68368319870.5299224646529.92246461471.288867797928.89

    19880.90790719880.6787912645678.79126451171.336198692333.62

    19890.75275219890.5442667288544.266728851.381675491338.17

    19901.005100519900.7008539278700.85392779221.433964996343.40

    19911.135113519910.7454776951745.47769514581.522513694852.25

    19921.144114419920.7043198658704.31986581951.624262008762.43

    19930.97797719930.5669332908566.93329080881.723306808572.33

    19940.98198119940.5367789837536.77898374561.827567825382.76

    19951.053105319950.5490204702549.02047018231.917961273291.80

    19961.058105819960.5295292100.00

    19970.98498419970.4726311104472.63111035152.0819619751108.20

    19980.071271.219980.033241638533.24163849042.1418920135114.19

    19990.5619561.919990.2558442575255.8442574692.1962580109119.63

    20001.10811108.120000.497402789497.40278897982.2277719879122.78

    20011.58941589.420010.7012896164701.28961635032.2663960266126.6396026611

    20020.050350.320020.021969180421.9691804172.2895710739128.95710738981.0183200120022003200420052006

    20031.27523323031275.233230327520030.5452434611545.24346113692.3388326889133.88326889211.0382Inflation, GDP deflator (annual %)1.833.823.493.443.733.38

    20042.10140743642101.407436379820040.8808871889880.88718892252.3855579498138.55579497651.0349

    20050.6065015172606.501517186520050.249258691249.25869104512.4332211432143.32211432361.0344

    20065.36344157555363.44157551820062.1568681722156.86817200972.4866802919148.66802918791.03730.01830.03820.03490.03440.0373

    1.01831.03821.03491.03441.0373

    FDI inward flows

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    Inward FDI in Greece, 1980-2006 Flows- Billion USD (current)

    Greece ($current)

    FDI % of capital formation

    0

    0

    0

    0

    0

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    Inward FDI in Greece, 1980-2006 Flows- Billion USD (constant 1980 prices)

    YEAR

    YEARGreece ($current)Greece (inward FDI as % of gross fixed capital formation)YEARPortugalSpain

    19800.048448419800.01690.028

    19810.044444419810.01790.0369

    19820.039439419820.01540.0403

    19830.040940919830.01860.0432

    19840.057557519840.03310.0512

    19850.049649619850.04690.0527

    19860.042642619860.02810.0647

    19870.056156119870.03990.0639

    19880.064364319880.06340.0769

    19890.049149119890.11430.0791

    19900.051751719900.13420.0956

    19910.055755719910.11670.08

    19920.053853819920.07790.1022

    19930.051651619930.0770.0855

    19940.052552519940.06070.0826

    19950.048248219950.02690.0628

    19960.043743719960.04960.0724

    19970.04141019970.08360.0715

    19980.00282819980.09560.1024

    19990.019719719990.03550.1235

    20000.041441420000.21760.2638

    20010.056856820010.20350.1794

    20020.00161620020.05650.2181

    20030.028828820030.2460.1083

    20040.039939920040.05870.0853

    20050.011411420050.10030.0758

    20060.090390320060.17240.054

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    Inward FDI in Greece, 1980-2006 % of gross capital formation

    Greece ($current)

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

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    000

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    000

    000

    000

    Inward FDI: Greece,Portugal & Spain, 1980-2006 % of gross capital formation

    Greece ($current)

    Portugal

    Spain

    MBD00000514.unknown

    MBD000008AE.unknown

    MBD000AC3E8.unknown

    MBD000AC3EC.unknown

    MBD000AC3F0.unknown

    MBD000B717B.unknown

    MBD000AC3F1.unknown

    MBD000AC3EE.unknown

    MBD000AC3EF.unknown

    MBD000AC3ED.unknown

    MBD000AC3EA.unknown

    MBD000AC3EB.unknown

    MBD000AC3E9.unknown

    MBD00000A80.unknown

    MBD000AC3E6.unknown

    MBD000AC3E7.unknown

    MBD000AC3E5.unknown

    MBD000009A6.unknown

    MBD00000A24.unknown

    MBD0000092A.unknown

    MBD000006C2.unknown

    MBD000007C2.unknown

    MBD00000838.unknown

    MBD00000748.unknown

    MBD000005EC.unknown

    MBD00000650.unknown

    MBD0000056C.unknown

    MBD00000156.unknown

    MBD00000342.unknown

    MBD0000043A.unknown

    MBD000004B8.unknown

    MBD000003BE.unknown

    MBD00000256.unknown

    MBD000002CC.unknown

    MBD000001DC.unknown

    MBD00000080.unknown

    MBD000000E4.unknown

  • Greek FDI inflows (2): A clearer view

    Sources of Inward FDI in Greece (2001):European Union: 70% [~50% from Luxembourg and Holland]Other European countries: 16%United States: 7%

    Chart2

    0.672

    0.4762666143

    0.3912823015

    0.3856993587

    0.4158932255

    0.3734896551

    0.3814346734

    0.5299224646

    0.6787912645

    0.5442667288

    0.7008539278

    0.7454776951

    0.7043198658

    0.5669332908

    0.5367789837

    0.5490204702

    0.529

    0.4726311104

    0.0332416385

    0.2558442575

    0.497402789

    0.7012896164

    0.0219691804

    0.5452434611

    0.8808871889

    0.249258691

    2.156868172

    Inward FDI in Greece, 1980-2006 Flows- Billion USD (constant 1980 prices)

    YEAR

    Page2_b

    time_codecountry_codeoverall_earnmanag_rankingrankR2

    YR2003Norway16

    YR2003Sweden22

    YR2003Denmark311

    YR2003Austrial41

    YR2003Switzerland513

    YR2003Poland68

    YR2003Italy715

    YR2003Ireland83

    YR2003Finland912

    YR2003Belgium104

    YR2003Netherlands1114

    YR2003Germany125

    YR2003Portugal137

    YR2003Spain1416

    YR2003UK159

    YR2003France1610

    YR2003Greece1717