Definition: Perpetual inventory method

Foreign direct investment

Refers to the process of deriving data on stocks (position data) from transaction data. Under this method, for which a stock estimate for some base point in time is required, the compiler may calculate the value of a stock at the end of a period as being equal to the value of the stock at the beginning of the period, plus the impact of transactions and non-transaction changes in the value of the stock during the period.
Organization for Economic Cooperation and Development (OECD), "Measuring Globalisation. OECD Handbook on Economic Globalisation Indicators (2005 Edition)", Paris, 2005

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