High income | Foreign direct investment, net inflows (BoP, current US$)

Foreign direct investment refers to direct investment equity flows in the reporting economy. It is the sum of equity capital, reinvestment of earnings, and other capital. Direct investment is 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 that is resident in another economy. Ownership of 10 percent or more of the ordinary shares of voting stock is the criterion for determining the existence of a direct investment relationship. Data are in current U.S. dollars. Development relevance: Private financial flows - equity and debt - account for the bulk of development finance. Equity flows comprise foreign direct investment (FDI) and portfolio equity. Debt flows are financing raised through bond issuance, bank lending, and supplier credits. Limitations and exceptions: FDI data do not give a complete picture of international investment in an economy. Balance of payments data on FDI do not include capital raised locally, an important source of investment financing in some developing countries. In addition, FDI data omit nonequity cross-border transactions such as intra-unit flows of goods and services. The volume of global private financial flows reported by the World Bank generally differs from that reported by other sources because of differences in sources, classification of economies, and method used to adjust and disaggregate reported information. In addition, particularly for debt financing, differences may also reflect how some installments of the transactions and certain offshore issuances are treated. Data on equity flows are shown for all countries for which data are available. Statistical concept and methodology: Data on equity flows are based on balance of payments data reported by the International Monetary Fund (IMF). Foreign direct investment (FDI) data are supplemented by the World Bank staff estimates using data from the United Nations Conference on Trade and Development (UNCTAD) and official national sources. The internationally accepted definition of FDI (from the sixth edition of the IMF's Balance of Payments Manual [2009]), includes the following components: equity investment, including investment associated with equity that gives rise to control or influence; investment in indirectly influenced or controlled enterprises; investment in fellow enterprises; debt (except selected debt); and reverse investment. The Framework for Direct Investment Relationships provides criteria for determining whether cross-border ownership results in a direct investment relationship, based on control and influence. Distinguished from other kinds of international investment, FDI is made to establish a lasting interest in or effective management control over an enterprise in another country. A lasting interest in an investment enterprise typically involves establishing warehouses, manufacturing facilities, and other permanent or long-term organizations abroad. Direct investments may take the form of greenfield investment, where the investor starts a new venture in a foreign country by constructing new operational facilities; joint venture, where the investor enters into a partnership agreement with a company abroad to establish a new enterprise; or merger and acquisition, where the investor acquires an existing enterprise abroad. The IMF suggests that investments should account for at least 10 percent of voting stock to be counted as FDI. In practice many countries set a higher threshold. Many countries fail to report reinvested earnings, and the definition of long-term loans differs among countries. BoP refers to Balance of Payments.
Publisher
The World Bank
Origin
High income
Records
63
Source
High income | Foreign direct investment, net inflows (BoP, current US$)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
9291565073.9818 1970
10891180619.924 1971
12433621668.128 1972
15603064874.358 1973
18942269014.071 1974
19632926468.089 1975
15678161354.86 1976
22205427922.23 1977
27301974576.433 1978
34559087071.497 1979
45895788221.468 1980
57346557475.188 1981
54587815457.824 1982
43860443591.872 1983
50666564853.854 1984
33470248641.788 1985
72278220409.372 1986
128330091536.14 1987
147615929197.98 1988
179526676077.43 1989
218661866635.8 1990
145537858233.8 1991
144189916013.57 1992
172753188665.94 1993
198227846437.58 1994
271751990424.83 1995
304971775568.68 1996
384594428437.24 1997
648788764603.73 1998
1047618221499.5 1999
1423935836938.3 2000
735502167864.94 2001
602760862468.25 2002
578875686371.31 2003
800675661856.96 2004
1270146794861.5 2005
1825260619302.7 2006
2599232096529.3 2007
1863000397350.6 2008
1023907149196.9 2009
1305565577817.6 2010
1641874507203.7 2011
1381521549468.6 2012
1431765531343.7 2013
1295520059943.7 2014
2152081537471.3 2015
2173150462915.7 2016
1649772646466.3 2017
280226859147.72 2018
1286850447644.3 2019
660762756753.82 2020
1430868857185.5 2021
1193882323080.6 2022

High income | Foreign direct investment, net inflows (BoP, current US$)

Foreign direct investment refers to direct investment equity flows in the reporting economy. It is the sum of equity capital, reinvestment of earnings, and other capital. Direct investment is 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 that is resident in another economy. Ownership of 10 percent or more of the ordinary shares of voting stock is the criterion for determining the existence of a direct investment relationship. Data are in current U.S. dollars. Development relevance: Private financial flows - equity and debt - account for the bulk of development finance. Equity flows comprise foreign direct investment (FDI) and portfolio equity. Debt flows are financing raised through bond issuance, bank lending, and supplier credits. Limitations and exceptions: FDI data do not give a complete picture of international investment in an economy. Balance of payments data on FDI do not include capital raised locally, an important source of investment financing in some developing countries. In addition, FDI data omit nonequity cross-border transactions such as intra-unit flows of goods and services. The volume of global private financial flows reported by the World Bank generally differs from that reported by other sources because of differences in sources, classification of economies, and method used to adjust and disaggregate reported information. In addition, particularly for debt financing, differences may also reflect how some installments of the transactions and certain offshore issuances are treated. Data on equity flows are shown for all countries for which data are available. Statistical concept and methodology: Data on equity flows are based on balance of payments data reported by the International Monetary Fund (IMF). Foreign direct investment (FDI) data are supplemented by the World Bank staff estimates using data from the United Nations Conference on Trade and Development (UNCTAD) and official national sources. The internationally accepted definition of FDI (from the sixth edition of the IMF's Balance of Payments Manual [2009]), includes the following components: equity investment, including investment associated with equity that gives rise to control or influence; investment in indirectly influenced or controlled enterprises; investment in fellow enterprises; debt (except selected debt); and reverse investment. The Framework for Direct Investment Relationships provides criteria for determining whether cross-border ownership results in a direct investment relationship, based on control and influence. Distinguished from other kinds of international investment, FDI is made to establish a lasting interest in or effective management control over an enterprise in another country. A lasting interest in an investment enterprise typically involves establishing warehouses, manufacturing facilities, and other permanent or long-term organizations abroad. Direct investments may take the form of greenfield investment, where the investor starts a new venture in a foreign country by constructing new operational facilities; joint venture, where the investor enters into a partnership agreement with a company abroad to establish a new enterprise; or merger and acquisition, where the investor acquires an existing enterprise abroad. The IMF suggests that investments should account for at least 10 percent of voting stock to be counted as FDI. In practice many countries set a higher threshold. Many countries fail to report reinvested earnings, and the definition of long-term loans differs among countries. BoP refers to Balance of Payments.
Publisher
The World Bank
Origin
High income
Records
63
Source