What is the difference between FDI net inflows and net outflows?
Foreign direct investment (FDI) are the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. FDI net inflows are the value of inward direct investment made by non-resident investors in the reporting economy”. ”FDI net outflows are the value of outward direct investment made by the residents of the reporting economy to external economies. Negative values of FDI net inflows for a particular year show that the value of disinvestment by foreign investors was more than the value of capital newly invested in the reporting economy. Negative values of FDI net outflows show that the value of direct investment made by domestic investors to external economies was less than the value of repatriated (disinvested) direct investment f
