FDI STATISTICS IN BOSNIA AND HERZEGOVINA

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REGIONAL INVESTMENT STATISTICS Workshop I
Upgrading FDI Data Collection, Elaboration
Dissemination Systems 7-9 June 2006

• FDI STATISTICS IN BOSNIA AND HERZEGOVINA

Suzana Kozinovic, Economist II Balance of
Payments Statistics Section Central Bank of
Bosnia and Herzegovina
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• FDI data collection up to 2004
• Two entity Ministries collected data on FDI
• In May 2003, national Ministry of Foreign Trade
  and Economic Relations BH (Ministry) started
  registration of FDI data at the state level.

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Why survey? BH experience.

• Data collecting methodology used by the Ministry
  has some limitations for the purpose of BOP
  statistics
• It is not based on international standards
• Covers only amounts registered i.e. committed to
  be invested in BH
• Recording date and amount of approval, not of
  actual investment (time lags, or approved
  investment never took place)

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Why survey? BH experience.

• Does not contain data on flows of direct
  investment i.e. transactions during the period
  which is essential for BOP purposes
• Does not include information on non-equity
  transaction, such as inter-company loans
• Does not include data about enterprises whose
  share were bought through stock exchange.

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• Legal framework
• Article 56 and 68 of the Law on Central Bank of
  Bosnia and Herzegovina (CBBH)
• Decision on monetary and balance of payments
  statistics data collection (CBBH)
• State level Law on FDI policy

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CBBH Initial Survey on foreign investment

• Conducted on nearly 950 registered businesses
• High response rate - 68
• Total reported book value of foreign direct
  investment in BH on June 30, 2003 was about 42
  higher than previously available data from other
  sources
• The survey for the first time identified the
  portfolio and other investment
• Large concentration of FDI, 95, in only 110
  banks and businesses out of 720 surveyed.

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CBBH Survey on foreign investment quarterly and
annually

• Sources for creating list of banks and
  enterprises
• with FDI for quarterly surveys
• Initial survey (all banks and large private
  business identified as on-going investors)
• The Ministry of Foreign Trade and Economic
  Relations of BH
• Central Registry of securities Republic of
  Srpska
• Press information.

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CBBH Survey on foreign investment quarterly and
annually

• Businesses with a stock of inward FDI above the
  euro 50,000 threshold, as identified in the
  initial or subsequent quarterly surveys, are
  included in annual surveys.
• Annual survey is conducted regularly each year in
  respect of the previous calendar year

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CBBH Survey on foreign investment quarterly and
annually

• The methodology - IMF Balance of Payments Manual,
  Fifth Edition and OECD Benchmark, Third Edition.
• The rule of 10 of foreign ownership of shares -
  to distinguish between direct and portfolio
  investment.
• Only actually received amounts, not those listed
  in contracts is recorder.
• Forms cover stock as well as flow data.
• Data on profit are only collected annually.

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Revisions

• Previous quarters of the year in question in the
  database are revised quarterly
• Data revision for annual report is done annually,
  for the previous year.

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Data dissemination

• Statistics from the quarterly and annual survey
  on foreign investment is published at the CBBH
  publications and web site www.cbbh.ba
• Data on foreign investment in BH are classified
  by
• type of investment (direct, and portfolio and
  other)
• country of foreign investor
• industry of the recipient of foreign investment.
  

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Challenges

• Legislative
• Two different disseminations of data on FDI flows
  in BH
• Resources and staff training

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Concluding remarks

• Foreign investment - important source of
  financing of BHs current account deficit and
  economic development in BH.
• CBBH plans to continue and improve survey on
  foreign investment in the future.

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• Thank You For Your Attention !