Foreign direct investments

Producer: Statistics Finland
Homepage: http://www.stat.fi/til/ssij/index_en.html
Main topic: Enterprises
Related topics: National Accounts
Official Statistics of Finland (OSF): Yes
European Statistical System (ESS): Yes

Description

Direct investments to Finland describe the capital that a foreign investor has invested directly in a unit located in Finland under the investors' control or influence. Direct investments abroad describe the capital that a Finnish investor has invested directly in a unit located abroad under the investors' control or influence. The statistics compilation is based on Regulation (EC) No 184/2005 of the European Parliament and of the Council on Community statistics concerning balance of payments, international trade in services and foreign direct investment. The statistical data can be used to assess the degree of globalisation in the economy.

Data content

The statistics on direct investments produce annual data on investment activities that are based on significant influence and on a long-term interest. In practice, the statistics describe the financial transactions between domestic and foreign units in multinational groups and the receivables and liabilities these generate, as well as international corporate acquisitions. Direct investments are part of the balance of payments statistics framework but the data are also published as separate statistics.

Classifications used

The classifications used in the statistics are the country classification (all countries), the Standard Industrial Classification (TOL2008), and the Institutional Classification of Sectors (ISL2000).

Data collection methods and data sources

Monthly data collection on foreign financial assets and liabilities
Annual data collection on foreign financial assets and liabilities

The main data sources for the statistics on direct investments are the annual balance of payments survey on foreign financial assets and liabilities (BOPA) and the monthly survey on foreign financial assets and liabilities (BOPM). These statistics are based on a joint data collection of Statistics Finland and the Bank of Finland. The data for the annual statistics are collected with an electronic PDF questionnaire.

The annual inquiry is based on a cut off sample, where the respondents are selected so that around 95 per cent of the value of the portfolio of direct investments is covered. The framework of the inquiry is based on the Business Register and its additional data on foreign ownership, the Group Register and its data on affiliates, and the data of the Tax Administration. The inquiry includes yearly some 1,100 local enterprise groups. The value of direct investments for the part of the framework that is not inquired is estimated based on balance sheet data from the Tax Administration by estimating the ratio between direct investment variables and corresponding balance sheet variables (regression equation) among the smaller enterprises included in the inquiry.

The monthly survey on foreign financial assets and liabilities (BOPM) also asks about direct investments, therefore the annual inquiry has been tailored based on the respondent strata to avoid overlapping data collection. Continuous monitoring of direct investments and up-to-date separate inquiries on international business acquisitions also belong to the regular production of the statistics. Due to the structure of the compilation process, the statistics are continuously supplemented.

Data collections

Updating frequency

Data on direct investment by country and sector in accordance with the renewed direction principle are published annually in the statistics on direct investments.

Direct investments' monthly net capital flows in accordance with the receivables/liabilities principle are released six weeks after the end of the month as part of the balance of payments statistics. Quarterly investment portfolios of direct investments are released two and a half months after the end of the quarter in connection with the balance of payments.

Time of completion or release

The statistics on direct investments are released annually at the end of October.

Time series

Time series for direct investments are available from 1994.

Keywords

direct investments, foreign direct investments, balance of payments, globalisation, groups, enterprises

Contact information

http://tilastokeskus.fi/til/ssij/yht_en.html

Last updated 22.08.2018