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Foreign direct investment (FDI) is a category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy. Ownership of 10 percent or more of the voting power in an enterprise in one economy by an investor in another economy is evidence of such a relationship. FDI is a key element in international economic integration because it creates stable and long-lasting links between economies. FDI is an important channel for the transfer of technology between countries, promotes international trade through access to foreign markets, and can be an important vehicle for economic development. The indicators covered in this group are inward and outward values for stocks, flows and income, by partner country and by industry and FDI restrictiveness.
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Keywords: FDI, direct investment, abroad, Foreign
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Foreign Direct Investment (FDI) stocks measure the total level of direct investment at a given point in time, usually the end of a quarter or of a year. The outward FDI stock is the value of the resident investors' equity in and net loans to enterprises in foreign economies. The inward FDI stock is the value of foreign investors' equity in and net loans to enterprises resident in the reporting economy. FDI stocks are measured in USD and as a share of GDP. FDI creates stable and long-lasting links between economies.
Foreign Direct Investment (FDI) flows record the value of cross-border transactions related to direct investment during a given period of time, usually a quarter or a year. Financial flows consist of equity transactions, reinvestment of earnings, and intercompany debt transactions. Outward flows represent transactions that increase the investment that investors in the reporting economy have in enterprises in a foreign economy, such as through purchases of equity or reinvestment of earnings, less any transactions that decrease the investment that investors in the reporting economy have in enterprises in a foreign economy, such as sales of equity or borrowing by the resident investor from the foreign enterprise. Inward flows represent transactions that increase the investment that foreign investors have in enterprises resident in the reporting economy less transactions that decrease the investment of foreign investors in resident enterprises. FDI flows are measured in USD and as a share of GDP. FDI creates stable and long-lasting links between economies.
FDI restrictiveness is an OECD index gauging the restrictiveness of a country’s foreign direct investment (FDI) rules by looking at four main types of restrictions: foreign equity restrictions; discriminatory screening or approval mechanisms; restrictions on key foreign personnel and operational restrictions. Implementation issues are not addressed and factors such as the degree of transparency or discretion in granting approvals are not taken into account. The index here shows the total and nine component sectors taking values between 0 for open and 1 for closed.
Inward Foreign Direct Investment (FDI) stocks by partner country measure the total level of direct investment in the reporting economy at the end of the year, by source countries. It is the value of equity in and net loans received by enterprises resident in the reporting economy from foreign investors resident in the source country. The indicator is shown for a restricted list of 7 source countries while the source database includes inward FDI stocks for worldwide source countries and regions, enabling, for example, the identification of the major sources of FDI for a specific OECD economy. Inward FDI stocks are allocated to the immediate counterpart country except for Austria, Canada, the Czech Republic, Estonia, Finland, France, Germany, Hungary, Iceland, Italy and the United States for which the indicator is allocated to the ultimate investing country. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions and as a share of total inward FDI stocks.
Outward Foreign Direct Investment (FDI) stocks by partner country measure the total level of direct investment from the reporting economy at the end of the year, by destination countries. It is the value of the resident investors' equity in and net loans to enterprises in the foreign destination country. The indicator is shown for a restricted list of 7 destination countries while the source database includes outward FDI stocks for worldwide destinations, enabling, for example, the identification of the major destinations of FDI for a specific OECD economy. Outward FDI stocks are allocated to the immediate counterpart country for all OECD countries. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions and as a share of total outward FDI stocks.
Inward Foreign Direct Investment (FDI) flows by partner country record the value of cross-border direct investment transactions received by the reporting economy during a year, by source country. It represents transactions that increase the investment that foreign investors from the source country have in enterprises resident in the reporting economy, less transactions that decrease the investment of foreign investors in resident enterprises. It is shown for a restricted list of 7 origin countries while the source database includes inward FDI flows for worldwide geographic details, enabling, for example, the identification of the major sources of FDI for a specific OECD economy in that year. Inward FDI flows are allocated to the immediate counterpart country for all OECD countries. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions.
Outward Foreign Direct Investment (FDI) flows by partner country record the value of cross-border direct investment transactions from the reporting economy during a year, by destination country or region. Outward flows by partner country represent transactions that increase the investment that investors in the reporting economy have in enterprises in the destination country less any transactions that decrease the investment that investors in the reporting economy have in enterprises in the destination country. This indicator is shown for a restricted list of 7 destination countries while the source database includes outward FDI flows for worldwide destination countries or regions, enabling, for example, the identification of the major destinations of FDI for a specific OECD economy in that year. Outward FDI flows are allocated to the immediate counterpart country for all OECD countries. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions.
Inward Foreign Direct Investment (FDI) stocks by industry measure the total level of direct investment in the reporting economy at the end of the year, by industry sector.It is the value of foreign investors’ equity in and net loans received by enterprises of a specific industry resident in the reporting economy, at the end of the year. The indicator is shown for a restricted list of nine major ISIC4 industries while the source database includes inward FDI stocks for 84 ISIC4 industries enabling the identification of the most attractive industry sectors for FDI in each OECD economy. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions and as a share of total inward FDI stocks.
Outward Foreign Direct Investment (FDI) stocks by industry measure the total level of direct investment from the reporting economy at the end of the year, by industry sector. It is the value of the resident investors' equity in and net loans to enterprises resident abroad, for a specific industry at the end of the year. This indicator is shown for a restricted list of nine major ISIC4 industries while the source database includes outward FDI stocks for 84 ISIC4 industries. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions and as a share of total outward FDI stocks
Inward Foreign Direct Investment (FDI) flows by industry record the value of cross-border direct investment transactions received by the reporting economy during a year, by industry sector. It represents transactions that increase the investment that foreign investors have in enterprises of a specific industry resident in the reporting economy, less transactions that decrease the investment of foreign investors in those resident enterprises. This indicator is shown for a restricted list of 9 ISIC4 industries while the source database includes inward FDI flows for 84 ISIC4 industries, enabling, for example, the identification of the most attractive industries for FDI in each OECD economy in that year. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions.
Outward Foreign Direct Investment (FDI) flows by industry record the value of cross-border direct investment transactions from the reporting economy during a year, by industry sector. It represents transactions that increase the investment that investors in the reporting economy have in enterprises resident abroad less any transactions that decrease the investment that investors in the reporting economy have in enterprises resident abroad, for a specific industry. It is shown for a restricted list of nine ISIC4 industries while the source database includes outward FDI flows for 84 ISIC4 industries. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions.
Foreign Direct Investment (FDI) income payments by partner country measure the total returns within a year on direct investment stocks paid by enterprises in the reporting economy to their foreign investors, by destination countries. It consists of earnings on equity investments plus interests on debt payables by enterprises resident in the reporting economy to their foreign investors resident in the destination country or region. The indicator is shown for a restricted list of 7 destination countries while the source database includes FDI income payments for worldwide destination countries and regions, enabling, for example, the identification of the major destinations of FDI income payments for a specific OECD economy in that year. FDI income payments are allocated to the immediate counterpart country for all OECD countries. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions.
Foreign Direct Investment (FDI) income receipts by partner country measure the total returns within a year on direct investment stocks received by investors in the reporting economy from their direct investment enterprises abroad, by source countries. It consists of earnings on equity investments plus interests on debt receivables by investors resident in the reporting economy from enterprises resident in the source country or region. The indicator is shown for a restricted list of 7 source countries while the source database includes FDI income receipts for worldwide source countries and regions, enabling, for example, the identification of the major sources of FDI income receipts for a specific OECD economy in that year. FDI income receipts are allocated to the immediate counterpart country for all OECD countries. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions.
Foreign Direct Investment (FDI) income payments by industry measure the total returns within a year on direct investment stocks paid by enterprises in the reporting economy to their foreign investors, by industry sector. It consists of earnings on equity investments plus interests on debt payables by enterprises of a specific industry resident in the reporting economy to their foreign investors. The indicator is shown for a restricted list of nine ISIC4 industries while the source database includes FDI income payments for 84 ISIC4 industries. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions.
Foreign Direct Investment (FDI) income receipts by industry measure the total returns within a year on direct investment stocks received by enterprises in the reporting economy from their foreign investors, by industry. It consists of earnings on equity investments plus interests on debt payables by enterprises resident in the reporting economy to their foreign investors, by industry sectors. The indicator is shown for a restricted list of nine ISIC4 industries while the source database includes FDI income payments for 84 ISIC4 industries. Resident Special Purpose Entities (SPEs) are excluded for Austria, Belgium, Denmark, Hungary, Iceland, Mexico, the Netherlands, Norway, Poland and Portugal. SPEs do not exist or are not significant in Australia, the Czech Republic, Finland, France, Germany, Greece, Israel, Italy, Japan, Latvia, Lithuania, New Zealand, the Slovak Republic, Slovenia, Turkey and the United States. This indicator is measured in USD millions.
