Definition

FDI is defined as investment by a resident entity in one economy that reflects the objective of obtaining a lasting interest in an enterprise resident in another economy. The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence by the direct investor on the management of the enterprise. The ownership of at least 10% of the voting power, representing the influence by the investor, is the basic criterion used. Hence, control by the foreign investor (ownership of more than 50% of the voting power) is not required.

Inward stocks are all direct investments held by non-residents in the reporting economy; outward stocks are the investments of the reporting economy held abroad.

The table on FDI stocks also shows their distribution according to broad sectors of the industry, namely manufacturing and services.

Negative flows generally indicate disinvestments or the impact of substantial reimbursements of inter-company loans.

For more statistics on economic, environmental and social issues visit online the OECD Factbook 2010.