There is no one simple method of measuring inward investment, but most methods of measuring it either focus on the number of projects or jobs, or the financial value. Financial measurements are either of stocks or flows.
FDI stocksFDI stocks measure the level of cumulative FDI stock of capital investment by foreign enterprises at a single point of time that takes account of both new investment and disinvestment. The United Nations Conference on Trade and Development (UNCTAD) produces annual statistics of global stock movements in their World Investment Report.
FDI flowsFDI flows are new investments by foreign enterprises made during a period of time – either by calendar or tax year. While much inward investment is included in FDI flow statistics, not all of it will be. For example, if an inward investor decided to expand its facilities in the UK but used local finance, this would not appear in FDI flow statistics as it involves no inflow of
money to the country.
FDI stocksFDI stocks measure the level of cumulative FDI stock of capital investment by foreign enterprises at a single point of time that takes account of both new investment and disinvestment. The United Nations Conference on Trade and Development (UNCTAD) produces annual statistics of global stock movements in their World Investment Report.
FDI flowsFDI flows are new investments by foreign enterprises made during a period of time – either by calendar or tax year. While much inward investment is included in FDI flow statistics, not all of it will be. For example, if an inward investor decided to expand its facilities in the UK but used local finance, this would not appear in FDI flow statistics as it involves no inflow of
money to the country.
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