← All explainers

Foreign direct investment

Updated: 0 views

FDI describes cross-border investment relationships with a lasting investor interest.

Statistical threshold

The World Bank definition uses at least 10% of voting shares. This accounting criterion does not automatically mean full control.

More than new factories

Flows include equity, reinvested earnings and relevant debt transactions. An increase need not represent new construction.

Compare like data

FinFly recommends distinguishing annual flows from accumulated positions, inward from outward investment, and net from gross values.

Primary sources

The explainer is checked against these institutional and industry sources. Links open the original material.

All explainers