Notes On The And Flow Data

1087 Words Jan 26th, 2016 5 Pages
Tostudy the impactofpoliticalaffinity onFDI,I employ the datafrom UNCTAD,whichrecord bilateral FDI stock and flow data for more than 200 countries from 2001 to 2012. Since FDI flow data can be a poor conceptual choice for answering political questions (Kerner, 2014;
Sorens and Ruger, 2015; Benacek et al., 2014), I choose to use only the stock data.
One possible drawback for UNCTAD data is its compilation by reports from different countries, which have varied reporting rules and rigorousness. As a result, it may have serious measurement errors or substantial missing values. However, this weakness appears to plague the other two major FDI data resources (IMF and OECD) as well. 1 In addition, since biased or missing data often correlate with poor institution development of the reporting country (Sorens and Ruger, 2012), I would argue adding controls for the country (like the total volume of FDI reported from the country) may somehow alleviate the concern. Moreover, without a better cross-national 2 alternative, I would choose to utilize UNCTAD data at least for the time being.
1If this study is worth pursuing, I may use these data for empirical tests as well.
2More nuanced FDI data from a single country can still be found. For instance, the Heritage foundation records
Chinese outward FDI by each case from 2005. This may also be used for future robustness test.
The dependent variable will be measured by the instock FDI volume between a country…

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