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Foreign direct investment (FDI) is the direct ownership of facilities in the target country. It involves the transfer of resources including capital, technology, and personnel. Direct foreign investment may be made through the acquisition of an existing entity or the establishment of a new enterprise.
INDICATOR (a) Name: Foreign Direct Investment net inflows and net outflows as share of GDP (b) Brief Definition: Foreign Direct investment (FDI) is investment made to acquire a lasting interest in or effective control over an enterprise operating outside of the economy of the investor.oreover, FDI is typically less volatile than foreign portfolio investment. In many cases, FDI also contributes to the transfer (spill-over) of technology and improvement of labor and management skills. Sustained increases in FDI inflows are often a sign of an improved investment climate.