FDI and Globalisation

The statistical indicators on foreign direct investment (FDI) that are at the core of this benchmark definition relate to transactions and positions between direct investors and their direct investment enterprises, rather than to the overall financing and operations of those enterprises. For example, the direct investment position measures the equity and debt financing provided by direct investors and excludes any such financing that may have been provided by other owners or lenders. Similarly, direct investment income includes the direct investors’ shares in the earnings and the interest payments of direct investment enterprises, but it excludes the shares of others. Measures of inputs used and output produced by direct investment enterprises, such as employment and value added, fall outside the scope of FDI statistics.