Foreign direct investment is defined as investment by a resident entity in one economy with the objective of obtaining a lasting interest in an enterprise resident in another economy. The lasting interest means 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 direct investment 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 is not required.
Inward stocks are the direct investments held by non-residents in the reporting economy; outward stocks are the investments of the reporting economy held abroad.
The stock tables also show the distribution of stocks according to broad sectors of the industry, namely manufacturing and services.
Negative flows may generally indicate disinvestments or the impact of substantial reimbursements of inter-company loans.