How is FDI calculated?

Economic Development Indices Questions



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How is FDI calculated?

FDI, or Foreign Direct Investment, is calculated by summing up the total value of investments made by foreign entities in a country during a specific time period. This includes investments in physical assets such as buildings and machinery, as well as investments in intangible assets like intellectual property rights and technology transfers. FDI is typically measured in terms of net inflows, which represent the difference between the total inflows and outflows of foreign investments.