Statistical concept
Eurostat uses as a base for its work the OECD Benchmark Definition of Foreign Direct Investment Third Edition, a detailed operational definition fully consistent with the IMF Balance of Payments Manual, Fifth Edition, BPM5.
· Foreign direct investment (FDI) is the category of international investment made by an entity resident in one economy (direct investor) to acquire a lasting interest in an enterprise operating in another economy (direct investment enterprise). The lasting interest is deemed to exist if the direct investor acquires at least 10% of the voting power of the direct investment enterprise.
· FDI statistics record separately:
1) Inward FDI (or FDI in the reporting economy), namely investment by foreigners in enterprises resident in the reporting economy.
2) Outward FDI (or FDI abroad), namely investment by residents entities in affiliated enterprises abroad.
FDI statistics record both the initial investment and all subsequent investment made by the direct investor, in the form of equity capital, or in the form of loans, or in the form of reinvesting earnings. Investment made through other affiliated enterprises of the same group of the direct investor should also be recorded according to the international methodology