Definition of FDI / Foreign Direct Investment

Definition: FDI stands for Foreign Direct Investment, a component of a country's national financial accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. Foreign direct investment is thought to be more useful to a country than investments in the equity of its companies because equity investments are potentially "hot money" which can leave at the first sign of trouble, whereas FDI is durable and generally useful whether things go well or badly.

Terms related to FDI / Foreign Direct Investment:

• Investment
• Capital Consumption
• Current Account Balance

About.Com Resources on FDI / Foreign Direct Investment:

• What is a Ponzi Scheme?
• How Do High Small Business Corporate Tax Rates Hurt The Economy?
• What Happens if Interest Rates Go To Zero?

Writing a Term Paper? Here are a few starting points for research on FDI / Foreign Direct Investment:

Books on FDI / Foreign Direct Investment:

• Understanding FDI-Assisted Economic Development
• The Impact of FDI on Economic Growth
• FDI And Industrial Organization in Developing Countries

Journal Articles on FDI / Foreign Direct Investment:

• How does foreign direct investment affect economic growth?
• Foreign Direct Investment in Developing Countries
• Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras