User's guide
I. FDI DATA IN EUROSTAT WEBSITE
II. GLOSSARY
III. FREQUENTLY ASKED QUESTIONS
A. Which indicators exist for FDI and how is the selection made in the detailed
datasets?
1. Which “post” should be selected for FDI flows and stocks?
2. Which “post” should be selected for FDI income?
B. Why the most recent year is sometimes available only for few partner
countries?
C. For which reporting economies (“geo”) does Eurostat publish FDI data?
D. For which partner countries does Eurostat publish FDI data?
E. Could I have examples of questions about FDI and respective answers?
F. How are FDI data broken down by kind of activity?
G. What about a simultaneous breakdown by partner country and economic
activity?
H. Why are EU aggregates often available while there is no data for all 15
countries?
I. FDI DATA IN EUROSTAT WEBSITE
FDI data are in Eurostat Website in the section Data/Balance of payments/European Union
direct investment. The section contains datasets from which users can create their own tables,
by selecting the required positions along the given dimensions. In Eurostat Website there are
also predefined tables for FDI data, in which the dimensions are fixed, and these are contained
in the section Tables/Long-term indicators/Economy and finance/Balance of
payments/European Union direct investment.
The part Data/Balance of payments/European Union direct investment contains five distinct
datasets from which users can create and download their own tables.

EU direct investment - Main indicators
This dataset contains the main data series for EU aggregates, EU Member States and other
reporting countries starting from reference period 1992 for FLOWS, 1994 for STOCKS and
1995 for INCOME. Indicators included in Main indicators are total inward and outward
FLOWS, STOCKS and INCOME, broken down by counterpart country or zone. Flows and
stocks are also shown as % of GDP of the reporting economy, with partners “rest of the
world”. EU15 aggregates go from 1992 to 2004, while EU25 aggregates start in 2001. For
EU15 and EU 25 aggregates, data are given by a detailed partner list, except for 2004
FLOWS. EU 2004 data are preliminary and existing only with detail by main partner. For
Member States and other reporting countries, only main partners are included for all years.
There is no detail in this dataset according to FDI by kind of activity or by kind of instrument.
In some cases (mainly in the case of Spain, Greece, Belgium-Luxembourg before 2002 and
EU aggregates before 1995) data for FLOWS do not include reinvested earnings. In the
detailed table for flows (see below) these data are shown under the post “equity and other
capital”.

EU direct investment positions, breakdown by country and economic activity
This dataset contains detailed data for FDI stocks starting from reference period 1994 to 2002.
Data are broken down by partner, kind of activity and type of instrument.

EU direct investment flows, breakdown by partner country and economic activity
This dataset contains detailed data for FDI flows starting from reference period 1984 to 2003.
Data are broken down by partner, kind of activity and type of instrument.

EU direct investment income, breakdown by partner country and economic activity
This dataset contains detailed data for FDI flows starting from reference period 1995 to 2003.
Data are broken down by partner, kind of activity (not for EU aggregates) and type of income.

FDI structural indicators
This dataset contains only one indicator called FDI intensity as % of GDP. This is the
average of inward and outward FDI flows divided by GDP. A higher index indicates higher
new FDI during the period in relation to the size of the economy as measured by GDP.
II. GLOSSARY
Balance of payments
is a record of an economy's international transactions with the rest of the world. The balance
of payments is a statistical statement that systematically summarises, over a given period of
time, all transactions of an economy with the rest of the world. Transactions are those of the
current account (goods, services, income and current transfers) and the capital and financial
account (capital transfers, direct investment, portfolio investment, other investment and
reserve assets).
International Investment Position (IIP)
is the balance sheet of the stock of external financial assets and liabilities. The position at the
end of a specific period reflects financial transactions, valuation changes and other
adjustments that occurred during the period and affected the level of assets and liabilities.
Foreign direct investment (FDI)
is cross-border investment for which a direct investor has the objective of a lasting interest in
an enterprise resident in another economy (direct investment enterprise). Constitutional
characteristics for a direct investment are the intention for a long-term relationship between
the direct investor and the enterprise, and a significant influence in the management of the
enterprise. These are assumed to be fulfilled when an investor owns ten per-cent or more of
ordinary shares or voting power in an incorporated or unincorporated enterprise respectively
(OECD benchmark definition).
FDI capital
 Equity Capital
includes equity in branches and ordinary shares in subsidiaries and associates.
 Other capital
covers inter-company debt (including short-term loans such as trade credits) between direct
investors and subsidiaries, branches and associates.
 Reinvested earnings
consist of the direct investor's share (in proportion to direct equity participation) of earnings
not distributed as dividends by subsidiaries or associates and earnings of branches not
remitted to the direct investor.
Disinvestment
is formally defined as withdrawal of direct investment capital. The most frequent cases are
those where the direct investor sells participation (e.g. shares) it had invested in the direct
investment enterprise or where inter-company debt (e.g. loans) is paid back.
Sign convention
Balance of payments sign convention records outward direct investment with a minus, and
inward direct investment with a plus sign. Consequently, outward disinvestments are entered
with (+) and inward disinvestment with (-). Following requests from readers, both for inward
and outward flows, investment is presented in the statistical tables of this publication with a
positive sign and disinvestment is shown with a negative sign. Hence, the balance of
payments sign convention is not used in this publication.
Reporting economy
is the country or economic zone from whose view data are reported.
Partner economy
is the country or economic zone that has a foreign direct investment relationship with the
reporting economy.
FDI flows and positions
By direct investment flows the investor builds up a foreign direct investment position, making
part of his balance sheet. The FDI position (sometimes called FDI stocks) differs from
accumulated flows because of revaluation (changes in prices or exchange rates, and other
adjustments such as the rescheduling or cancellation of loans, debt forgiveness or debt-equity
swaps with differing values).
Outward flow (resident direct investment abroad)
means that the reporting economy invests in the partner economy if the figure in the cell of
the statistical table has a positive sign. If the sign is negative on outward investment the
reporting economy disinvests.
Inward flow (non-resident direct investment in the reporting economy)
means that the partner economy invests in the reporting economy if the figure in the cell of
the statistical table has a positive sign. If the sign is negative on inward investment the partner
economy disinvests.
Direct investment income
consists of income on FDI equity and on inter-company debt (interest). Income on equity
covers dividends and reinvested earnings for incorporated enterprises and distributed and
undistributed profits for branches.
Direct investment assets
is the current position of residents' direct investment abroad acquired by outward flows,
corrected by all relevant revaluation items. Equity capital and reinvested earnings abroad are
recorded under one asset heading, because the latter becomes equity capital later in several
cases.
Direct investment liabilities
is the current position of non-resident direct investment in the reporting economy acquired by
inward flows, corrected by all relevant revaluation items. Equity capital and reinvested
earnings in the reporting economy are recorded under one asset heading, because the latter
turns to equity capital later in several cases.
Market and book value
Flows are recorded at market values. Correspondingly, the positions should be recorded at
market prices at the beginning or end of the reference period. However, because the
evaluation of market prices for the different kinds of assets may be difficult, the book value of
the assets in the balance sheets may be used. Most position data in this yearbook are at book
value.
First chain ownership or ultimate beneficial owner
The stake in a direct investment enterprise located in country A might be held by a direct
investor in country B, the latter owned by a parent company in country C, that has no other
direct investor. In this simple case the foreign direct investment in the reporting economy of
A will be attributed to B when the first chain ownership concept is applied, whereas it will be
recorded as a direct investment of C if the ultimate beneficial owner concept is applied. Flow
and position data are based on the first chain ownership concept.
III. FREQUENTLY ASKED QUESTIONS
A. Which indicators exist for FDI and how is the selection made in the detailed datasets?
There is a first distinction in the database between flows, stocks and income. For flows and
stocks, inside the respective subset of the database and under the dimension post, there is a
distinction according to the direction (i.e. FDI abroad or in the reporting economy). For each
direction there is a distinction by type of instrument (total FDI, equity capital, other FDI
capital and reinvested earnings). For income, together with the dimension post, there is an
additional dimension that is called flow (see below under point 2).
1. Which “post” should be selected for FDI flows and stocks
General rule:
Total capital = equity capital + reinvested earnings + other capital
First, choose between 'abroad' and 'in the reporting economy',
Second, choose the detailed post.
1. FDI flows: Coverage and quality (since 1992) are best for post 'equity + other capital
(post 541 or 591) (thus FDI flows excluding reinvested earnings). If not available: try first
'total capital' and then 'equity capital'.
Exception: Austria: for 1992-1994 choose 'equity capital'
2. FDI stocks: Coverage and quality (since 1994 available!) are best for post 'total capital'
(post 505 or 555).
2. Which “post” should be selected for FDI income?
Additional dimension: income is further divided into 'credit' and 'debit'(dimension 'flow').
’Income credits’ mean: income received from direct investment abroad.
’Income debits’ mean: income paid to other countries due to direct investment in the
reporting country.
General rule:
Total income = dividends + reinvested earnings + interests
First, select 'credits' or 'debits' according to income received (from the partner country
abroad) or income paid (to the partner country abroad) ,
Second, choose the detailed post.
Coverage is better for 'direct investment income without reinvested earnings' (335, credit or
debit).
B. Why the most recent year is sometimes available only for few partner countries?
Between July and December of any year, data for flows of year T-1 are available only as
preliminary results and with reduced breakdown by partner country. During this period of the
year, these data are contained only in the dataset “Main indicators”, not in the complete
dataset for FDI flows. The detailed dataset for flows is updated for data of year T-1 in
December of year T.
C. For which reporting economies (“geo”) does Eurostat publish FDI data?
- Aggregated data for EU15, EU25 and Euro-zone
- Data for individual EU Member States
- For some non-EU economies: USA, Japan, Switzerland, Norway and Iceland
D. For which partner countries does Eurostat publish FDI data?
The dimension 'partner' covers about 60 partner countries and 45 economic or
geographical zones. A detailed list of partners is available here.
E. Could I have examples of questions about FDI and respective answers?
Examples:
 How much did Germany invest in 2000 in Mexico?
Indicator = flows
Reporter = Germany
Partner = Mexico
Post = 505

 How much of EU FDI was invested in the USA at end 2001?
Indicator = stocks
Reporter = EU
Partner = USA
Post = 505
Which part of UK FDI was invested in Australia at end-2001?
Indicator = stocks
Reporter = United Kingdom
Partner = aggregate ‘Australia’ and partner = ‘World’
Post=505
How much did other countries invest in 2000 in the EU?
Indicator = flows
Reporter = EU
Partner = Extra-EU
Post=555
 Which is the share of FDI held in France on total EU FDI from non-EU
countries?
Indicator = stocks
Reporter = EU, France
Partner = Extra-EU
Post=555
F. How are FDI data broken down by kind of activity?
All FDI data are in general broken down by kind of economic activity. The activity
breakdown is consistent with NACE Rev. 1 but less detailed (there are around 35 activities).
The sector of activity is - both FDI abroad and in the reporting economy - the resident
activity of the reporting economy. This means:
1. For FDI abroad: the activity of the direct investment enterprise
Example : How much did the German manufacturing industry invest in the USA?
2. For FDI in the reporting economy: the activity of the direct investor
Example : How much FDI capital did Dutch foreign investors place in the German trade &
repair branch?
Please see the table with the list of activities used in FDI statistics and a correspondence with
NACE Rev1 and ISIC Rev3 activities.
G. What about a simultaneous breakdown by partner country and economic activity?
A simultaneous breakdown is only partially available. Reason: the information becomes so
detailed that even large countries quickly face problems of confidentiality. Example: How
much did Austrian chemical manufacturers invest in Poland?
The detail by kind of activity is currently available only crossed with the following partners:
World, EU, Extra-EU, USA, Japan, Canada, EFTA and all single EU Member States.
Coverage and quality are best for the activity breakdown with partner World, EU, Extra-EU,
USA and EFTA. For extractions with a simultaneous breakdown of detailed activity and
partner ALWAYS CHOOSE POST 'EQUITY + OTHER CAPITAL' FOR FLOWS AND
'TOTAL CAPITAL' FOR STOCKS!
H. Why are EU aggregates often available while there is no data for all 25 countries?
There exists a 'standard' set of tables that have to be available for the EU, including all
possible 'partner' dimensions for 'total activity' and all 'activity' dimensions for partners
World, EU, Extra-EU, USA, Japan, Canada and EFTA.
EU aggregates are calculated based on the single Member states' information - which partially
can be confidential or otherwise not available. In these cases the missing information is
estimated on the level of each Member State and then aggregated. These single countries'
estimates are principally not published. Therefore it is possible to have EU aggregates but
only individual data for some Member States.
EU aggregates always estimates for all missing information. The aggregates are not
partial!
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