Chart of the week: the seed investments that fail to sprout
Foreign direct investment is supposed to stimulate productivity and growth in other countries by transferring skills, technology and capital. But much of it isn’t doing that,
Foreign direct investment (FDI) is supposed to stimulate productivity and growth in other countries by transferring skills, technology and capital. But a large percentage of the world's total FDI isn't doing that, according to a study by the International Monetary Fund and the University of Copenhagen. Around $15trn, or 40% of the global total, is "phantom" investment, with money coming in, but not stimulating business activity. Multinational companies are channelling cash through "empty corporate shells" in other jurisdictions to minimise their tax bill. Luxembourg and the Netherlands account for half the phantom FDI. In Malta, Ireland and Switzerland less than 50% of FDI is real.
Viewpoint
Martin Vander Weyer, The Spectator
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Hargreaves Lansdown bumps up cash ISA with £25 cashback - does it beat the wider ISA market?
Just days before the end of the tax year, Hargreaves Lansdown has launched a £25 bonus for those who open a cash ISA on its savings platform. Does the bonus make it a competitive rate, and are you eligible for the cashback?
By Vaishali Varu Published
-
FCA targets finfluencers with new social media guidance
So-called finfluencers have been warned by the UK financial watchdog that they could face prosecution if they fail to follow new rules.
By Henry Sandercock Published
-
The charts that matter: bond yields and US dollar continue to climb
Charts The US dollar and government bond yields around the world continued to climb. Here’s what happened to the charts that matter most to the global economy.
By Ben Judge Last updated
-
The charts that matter: markets start the year with a crash
Charts As markets start 2022 with a big selloff, here’s what happened to the charts that matter most to the global economy.
By Ben Judge Published
-
The charts that matter: Fed becomes more hawkish
Charts Gold rose meanwhile the US dollar fell after a key Fed meeting. Here’s what else happened to the charts that matter most to the global economy.
By Saloni Sardana Published
-
The charts that matter: a tough week for bitcoin
Charts Cryptocurrency bitcoin slid by some 20% this week. Here’s what else happened to the charts that matter most to the global economy.
By Ben Judge Published
-
The charts that matter: omicron rattles markets
Charts Markets were rattled by the emergence of a new strain of Covid-19. Here’s how it has affected the charts that matter most to the global economy.
By Ben Judge Published
-
The charts that matter: the US dollar keeps on strengthening
Charts The US dollar saw further rises this week as gold and cryptocurrencies sold off. Here’s how that has affected the charts that matter most to the global economy.
By Ben Judge Published
-
The charts that matter: gold hangs on to gains while the dollar continues higher
Charts The gold price continued to hang on to last week’s gains, even as the US dollar powered higher this week. Here’s how that has affected the charts that matter most to the global economy.
By Ben Judge Published
-
The charts that matter: inflation fears give gold a much needed boost
Charts US inflation hit its highest in 30 years this week, driving gold and bitcoin to new highs. Here’s how that has affected the charts that matter most to the global economy.
By Ben Judge Published