Foreign direct investment (FDI) - FDI stocks - OECD Data (2024)

Certainly! As someone deeply involved in the field of international economics and foreign direct investment (FDI), my expertise spans across various aspects of FDI measurements, its impact on economies, and its role in creating interlinkages between different countries.

Let's break down the key concepts and terms from the provided article:

1. Foreign Direct Investment (FDI) Stocks: These measure the total level of direct investments at a specific point in time, typically at the end of a quarter or year. The outward FDI stock represents the value of a country's residents' equity in and net loans to foreign enterprises. Conversely, the inward FDI stock reflects the value of foreign investors' equity in and net loans to enterprises within a reporting economy. These stocks are measured in USD and often as a share of a country's GDP.

2. FDI Flows: These are different from stocks as they represent the actual financial movements or investments occurring between countries during a specified period. Inward FDI flows signify investments made by foreign entities into a specific country, while outward FDI flows indicate investments made by domestic entities in foreign economies.

3. FDI Restrictiveness: This concept highlights the degree of limitations, regulations, or barriers imposed by governments on foreign direct investments within their respective countries. Lower restrictiveness generally fosters more FDI inflows.

4. FDI Stocks and Flows by Partner Country/Industry: This involves analyzing FDI stocks and flows categorized by the countries or industries involved, providing insights into which nations or sectors attract or invest the most.

5. FDI Income Payments/Receipts by Partner Country/Industry: This refers to the income generated or received from FDI activities categorized by country or industry, reflecting the returns or payments made from these investments.

6. FDI as a Percentage of GDP: Expressing FDI stocks or flows as a percentage of Gross Domestic Product helps in understanding the relative importance of FDI in an economy's overall economic activity.

The OECD International Direct Investment Statistics publication serves as a comprehensive resource for understanding FDI trends, methodologies, and international standards for compiling FDI statistics. It's an invaluable reference for policymakers, economists, and businesses aiming to comprehend and analyze global investment patterns and their impact on economies.

The provided links to the OECD Benchmark Definition of Foreign Direct Investment from 2008 and the OECD Factbook from 2016 further supplement the understanding of FDI, offering historical context and additional data for analysis.

For those keen on detailed statistical analysis or seeking more recent developments, the OECD.Stat database serves as a rich source of data and indicators related to FDI and economic globalization.

This collective information and resources provided by OECD contribute significantly to shaping policies, understanding economic interdependencies, and gauging the evolving landscape of global investments.