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Source: OECD International direct investment database, IMF Reference:Benchmark Definition of Foreign Direct Investment, 3rd edition
Foreign direct investment reflects the objective of obtaining a lasting interest by a resident entity in one economy (‘‘direct investor'') in anentity resident in an economy other than that of the investor (‘‘direct investment enterprise''). The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence on the management of the enterprise. Direct investment involves both the initial transaction between the two entities and all subsequent capital transactions between them and among affiliated enterprises, both incorporated and unincorporated.
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