Page 411 - Invited Paper Session (IPS) - Volume 1

IPS173 Tatiana Mosquera Yon et al.

Complex multinational enterprises: A cooperative
approach between Deutsche Bundesbank and
Banque de France
2
1
Tatiana Mosquera Yon , Jens Walter
1 Banque de France
2 Deutsche Bundesbank

Abstract
The financial crisis raised concerns about the worldwide interconnectedness
of financial institutions and their ability to finance the economy. In the real
economy, multinational enterprises generate more and more economic and
financial flows due to their international organisation. In order to better
understand and explain the contribution of multinational enterprises in their
Balance of Payments (BoP), France and Germany undertook a common work
on large and complex multinational enterprises operating in the two countries.
Based on two work streams: an inter-institutional and an external one (in
collaboration with the multinational enterprises), implying exchange of
confidential information between institutions, this analysis improved the
knowledge on the multinational enterprises involved. It underlined the
increasing importance of intra-group real and financial flows that, thanks to
this work, will be more coherently recorded in the BoP of the two countries
and can be better explained in the future.

Keywords
Multinational enterprises, balance of payments, complex global production
arrangements, international fragmentation of production process

1. Sharing of data reported by complex multinational enterprises: a
cooperative approach between Deutsche Bundesbank and Banque
de France

Links between multinational enterprises and globalisation
Multinational enterprises (MNEs) are the key drivers to the globalisation
process in the last decades. International flows are increasing in amount and
frequency as MNEs grow. They enhance the interconnectedness of the
countries where they operate but also the competition among countries
willing to attract them as investors to stimulate economic growth and
employment.
The removal of restrictions on the movement of capital, the lowering of trade
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barriers by the World Trade Organisation GATT and GATS agreements,

1 GATT: General Agreement on Tariffs and Trade. GATS: General Agreement on Trade in Services.
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