Home  Journals  Economic Analysis: Theory and Practice  36(387) - 2014 September

German direct investment in the developed markets countries: the analysis of the German Federal Bank's statistics

Available online: 25 September 2014

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: 

Pages: 39-47

The article studies the characteristics of accumulated direct investment of Germany in five main investee countries (United States, United Kingdom, Netherlands, Belgium, Luxembourg) in comparison with the investment parameters of the countries with developed markets, in general. The analysis bases on statistics of the German Federal Bank (Deutsche Bundesbank) for 1991-2012. The author considers such indicators as growth rates of investment, their correlation with direct investment of developed countries in the Federal Republic of Germany, the turnover of foreign subsidiaries of German companies and its correlation with commodity export, as well as the specific indicators of investment activity. The author pays considerable attention to the sectoral structure specifics of German foreign investments in the USA, Great Britain, the Netherlands, Belgium, Luxembourg, namely, to the increased focus on the investment services segment (especially in the Netherlands and Luxembourg). This fact has entailed a clear slowdown in the growth of German investment in these countries over recent years. As a result, the author makes the following conclusions. The first conclusion is on the composition of the modern group of five major countries among the countries with developed markets, which are the recipients of the German capital. The second one is on the internal hierarchy of the top five in terms of the growth rate of German investment and the turnover of foreign subsidiaries of German companies. And the third conclusion is on the potential for further dynamic strengthening of German investment in the countries under consideration and a possible change in their role as a sphere of investing German capital in the countries with developed markets in the near future (mainly due to sectoral structure specifics of German investment in these countries).

Keywords: accumulated, foreign direct investment, exports, goods, capital, turnover, foreign subsidiaries, German companies, structure

References:

1. Deutsche Bundesbank. Bestandserhebung über Direktinvestitionen. Statistische Sonderveröffentlichung, April 10, 2014.
2. Deutsche Bundesbank. Statistik. Außenwirtschaft. Zeitreihen. Available at: Link.
3. Genesis-Online Datenbank. Statistik 51000. Außenhandel. Available at: Link.

View all articles of issue

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 23, Iss. 3 March 2024

Archive