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DataBank

Metadata Glossary

CodeBM.KLT.DINV.WD.GD.ZS
Indicator NameForeign direct investment, net outflows (% of GDP)
Long definitionForeign direct investment refers to direct investment equity flows in an 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. This series shows net outflows of investment from the reporting economy to the rest of the world, and is divided by GDP.
SourceInternational Monetary Fund, Balance of Payments database, supplemented by data from the United Nations Conference on Trade and Development and official national sources.
TopicEconomic Policy & Debt: Balance of payments: Capital & financial account
PeriodicityAnnual
Aggregation methodWeighted average
Limitations and exceptionsFDI 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.
General commentsNote: Data starting from 2005 are based on the sixth edition of the IMF's Balance of Payments Manual (BPM6).
License TypeCC BY-4.0
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