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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.
Latest publication
Indicators
- FDI stocks
- FDI flows
- FDI restrictiveness
- Inward FDI stocks by partner country
- Outward FDI stocks by partner country
- Inward FDI flows by partner country
- Outward FDI flows by partner country
- Inward FDI stocks by industry
- Outward FDI stocks by industry
- Inward FDI flows by industry
- Outward FDI flows by industry
- FDI income payments by partner country
- FDI income receipts by partner country
- FDI income payments by industry
- FDI income receipts by industry
FDI flowsSource: Benchmark definition, 4th edition (BMD4): Foreign direct investment: financial flows, main aggregates
Definition of
FDI flows
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.
Citation
Please cite this indicator as follows:
Related publications
Further indicators related to Foreign direct investment (FDI)
Further publications related to Foreign direct investment (FDI)
As a seasoned expert in the field of international economics and foreign direct investment (FDI), I bring a wealth of knowledge and experience to the table. My expertise is grounded in a deep understanding of the intricate mechanisms that drive cross-border transactions and shape the global economic landscape. I have actively followed and analyzed the latest trends, publications, and indicators related to FDI, constantly staying abreast of developments to ensure a comprehensive understanding of the subject matter.
Now, let's delve into the concepts mentioned in the provided article:
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Foreign Direct Investment (FDI) Flows:
- Definition: FDI flows record the value of cross-border transactions related to direct investment during a specific period, typically a quarter or a year.
- Components of Financial Flows: FDI flows encompass equity transactions, reinvestment of earnings, and intercompany debt transactions.
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Outward and Inward Flows:
- Outward Flows: Transactions that increase the investment that investors in the reporting economy have in enterprises in a foreign economy. This includes purchases of equity or reinvestment of earnings.
- Inward Flows: Transactions that increase the investment that foreign investors have in enterprises resident in the reporting economy.
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Measurement of FDI Flows:
- FDI flows are measured in USD and as a share of GDP, providing a quantitative assessment of the economic impact of cross-border investments.
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Creation of Stable Links:
- FDI creates stable and long-lasting links between economies, fostering economic interconnectedness and collaboration.
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Latest Publication and Source:
- The latest publication is the "OECD International Direct Investment Statistics" from 2023.
- Source: The information is based on the Benchmark Definition, 4th edition (BMD4), which outlines the financial flows and main aggregates of foreign direct investment.
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Indicators and Data:
- Various indicators related to FDI are provided, including FDI stocks, FDI flows, FDI restrictiveness, and more.
- The data is available in different formats such as charts, maps, and tables.
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Citation and Related Publications:
- Proper citation of the data source is emphasized, ensuring transparency and acknowledgment of the OECD's International Direct Investment Statistics.
- Related publications include the OECD Benchmark Definition of Foreign Direct Investment 2008 and other resources linked to FDI statistics implementation.
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Additional Resources:
- Links to additional resources are provided, offering further insight into implementing international standards for compiling FDI statistics.
By synthesizing this information, policymakers, economists, and researchers can gain a nuanced understanding of the dynamics and trends in international FDI, facilitating informed decision-making and strategic planning.
