Resources
- More statistics on direct investment by country and industry are available on the BEA website.
- A description of the estimation methods used to compile statistics on direct investment by country and industry is provided in U.S. International Economic Accounts: Concepts and Methods.
- Stay informed about BEA developments by reading the BEA Wire, signing up for BEA's email subscription service, or following BEA on Twitter @BEA_News.
Historical time series for these estimates can be accessed in BEA's Interactive Data Application. - Summary data by country are available in "BEA International Trade and Investment Country Facts."
- Access BEA data by registering for BEA's Data Application Programming Interface.
- Additional information on direct investment positions will be published in the August Survey of Current Business.
Definitions
Direct investmentis a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise resident in another economy. Ownership or control of 10 percent or more of the voting securities of an entity in another economy is the threshold for separating direct investment from other types of investment.
A foreign affiliate is a foreign business enterprise that is at least 10 percent owned by a single U.S. person or entity.
A U.S. parent is a U.S. person or entity that owns 10 percent or more of a foreign business enterprise.
A U.S. affiliate is a U.S. business enterprise that is at least 10 percent owned by a single foreign person or entity.
A foreign parent is the first person or entity outside the United States in a U.S. affiliate's ownership chain that has a direct investment interest in the affiliate.
The ultimate beneficial owner (UBO) is the person or entity, proceeding up a U.S. affiliate's chain of majority ownership (where the entity above owns more than 50 percent of the entity below), beginning with the foreign parent, that is not owned more than 50 percent by another entity. The UBO ultimately owns or controls, and thus ultimately derives the benefits and assumes the risks from owning or controlling, an affiliate. The country of the UBO is often the same as that of the foreign parent, but it may be a different country or the United States.
The direct investment position is the value of direct investors' equity in, and net outstanding loans to, their affiliates. Changes in the position result from financial transactions and other changes, including capital gains and losses, currency-translation adjustments, and other changes in volume and valuation, such as adjustments to book value from affiliates' current sale or purchase price.
Direct investment financial transactions are financial transactions that increase or decrease financial claims and liabilities between the parent group and their affiliates. Direct investment financial transactions consist of reinvestment of earnings, equity investment other than reinvestment of earnings, and investment in debt instruments.
Reinvestment of earnings is an affiliate's total earnings less dividends paid to its parent. It represents the part of earnings that are reinvested in the affiliate rather than repatriated to the parent.
Equity investment other than reinvestment of earnings is measured as the difference between equity increases and decreases. Equity increases are transactions that result in the parent increasing their equity interest in their affiliate. Equity decreases are transactions that result in the parent reducing their equity interest in their affiliate.
Debt instruments investment reflects parent group lending to and borrowing from their affiliates.
Income earned on direct investment includes income on equity—whether profits or losses and whether distributed or reinvested—and net interest on debt.
Statistical conventions
BEA's direct investment statistics are primarily based on data reported in the Quarterly Survey of U.S. Direct Investment Abroad (BE–577) and the Quarterly Survey of Foreign Direct Investment in the United States (BE–605). Both surveys are conducted by BEA.
The countries identified in this release reflect the location of the immediate counterpart, unless otherwise noted. The countries identified for the U.S. direct investment abroad position may not reflect the ultimate destination of the funds. Likewise, the countries identified for the foreign direct investment position in the? United States may not reflect the ultimate source of the funds, which is often the ultimate beneficial owner.
The direct investment positions in this release are valued at historical cost. Positions reflect the book value of direct investors' equity in, and net outstanding loans to, their affiliates. This valuation is derived principally from the accounting records of affiliates, which are primarily compiled under U.S. Generally Accepted Accounting Principles or International Financial Reporting Standards. This differs from the market value measure featured in the U.S. net International Investment Position (IIP) Accounts.
This release presents statistics on a directional basis rather than the on the asset/liability basis featured in the U.S. International Transactions Accounts (ITAs) and the U.S. net IIP Accounts. On a directional basis, direct investment claims and liabilities are classified according to whether the direct investor is a U.S. resident or a foreign resident. U.S. direct investment abroad occurs between a U.S. parent and its foreign affiliates. Foreign direct investment in the United States occurs between a foreign parent and its U.S. affiliates. On an asset/liability basis, direct investment statistics are organized according to whether the investment relates to an asset or liability for U.S. parents or for U.S. affiliates of foreign parents.
Related statistics
Statistics on direct investment by country and industry are one part of a broader set of U.S. International Economic Accounts that, taken together, provide a comprehensive, integrated, and detailed picture of U.S. international economic activities.
Statistics on direct investment and multinational enterprises (MNEs) include annual statistics on the activities of U.S. MNEs and U.S. affiliates of foreign MNEs as well as on new foreign direct investment in the United States.
The IIP Accounts are released quarterly. The IIP is a statistical balance sheet that presents the dollar value of U.S. financial assets and liabilities with respect to foreign residents at a specific point in time.
The ITAs are released quarterly. The ITAs are a statistical summary of economic activity between U.S. residents and the residents of other countries.
Statistics on international services, released annually, include detailed annual information on trade in services and on services supplied through the channel of direct investment by affiliates of MNEs.
U.S. international trade in goods and services, released by BEA and the U.S. Census Bureau, provides monthly statistics on trade in goods and services.
