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A direct foreign investment enterprise is an incorporated or unincorporated enterprise in which an investor resident in another economy owns 10 per cent or more of the ordinary shares or voting power (for an incorporated enterprise) or the equivalent (for an unincorporated enterprise).

Direct foreign investment enterprises comprise those entities that are identified as subsidiaries (investor owns more than 50 per cent), associates (investor owns 50 per cent or less) and branches (wholly or jointly owned unincorporated enterprises), either directly or indirectly owned by the investor. Consequently, ‘direct foreign investment enterprises’ is a broader concept than ‘foreign controlled corporations’

Source Publication:
ESA [4.65]

Cross References:
Direct investment enterprise – foreign – SNA/BPM

Version Indicator: ESA

Statistical Theme: Financial statistics - Foreign direct investment

Created on Tuesday, September 25, 2001

Last updated on Wednesday, November 7, 2001