Direct foreign investment

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Related to Direct foreign investment: Portfolio investment

Direct foreign investment (DFI)

Investment in real assets (such as land, buildings, or plants) outside one's own country.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Foreign Direct Investment

A major investment by a foreign corporation. A common example of foreign direct investment is a situation in which a foreign company comes into a country to build or buy a factory. Many economists believe that foreign direct investment is good for an economy, as it provides jobs and increases domestic capital. Critics point out that profits from foreign direct investment usually leave the country and go to the foreign company. Encouraging foreign direct investment is a major part of some IMF restructuring programs.
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References in periodicals archive ?
Despite its investments, Mexico was the nation with the worst drop in direct foreign investment in 2009 falling 51 percent and receiving $11.4 billion dollars.
TOKYO - Direct foreign investment in Japan totaled 981.2 billion yen in the first half of fiscal 2003, up 54.7% from a year earlier, the Finance Ministry said Wednesday.
They can use up to R2bn to fund direct foreign investment on the continent, up from a limit of R750m, through new relaxed foreign exchange controls announced by the SA Reserve Bank.
Direct foreign investment in Cuba came to only $38.9 million in 2001, a dramatic drop from the $488 million recorded in 2000.
Contributors address different types of capital flows -- bank lending, bonds, direct foreign investment -- and the implications of each for economic performance.
He said Japan should restructure and clean up its banking sector and further open its markets to direct foreign investment.
South Africa and its neighbours urgently need direct foreign investment, not just informal portfolio investments on the Johannesburg Stock Exchange.
real estate, AFIRE's member investments represent nearly two thirds of all direct foreign investment in U.S.
direct foreign investment. Specifically, each time a country demonstrates a 1 percent improvement in the Index score, it is matched by a 5.4 percent improvement in exports and investment.
Our direct foreign investment in, and foreign affiliate earnings reported from, the economies in this region as a whole have been a smaller share of the respective totals than their share of our exports.
But during the next few years, South Africa will need enormous direct foreign investment, particularly in computers, electronics and communications.
The transaction cost framework explains the preference for licensing over direct foreign investment at the firm level (Hennart, 1990).
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