Students Corner

What is Foreign Direct Investment (FDI)?

Direct investment is a category of international investment that, based on an equity ownership of at least 10%, reflects a lasting interest by a resident in one economy (the direct investor) in an enterprise resident in another economy (the direct investment enterprise). A direct investment relationship can exist between a number of affiliated enterprises whether the linkage involves a single chain or a number of chains. It can extend to a direct investment enterprise's subsidiaries, sub-subsidiaries and associates. Once the direct investment relationship is established, all subsequent financial flows between the related entities are recorded as direct investment transactions.

FDI information is published in the form of a quarterly release titled Balance of International Payments (PDF 196KB) and annual releases called Foreign Direct Investment (PDF 134KB) and International Investment Position (PDF 184KB)