Definition: Reinvested earnings
Foreign direct investment
These consist of the direct investor’s share, in proportion to equity held, of the undistributed earnings of the direct investment enterprise.
Reinvested earnings are conceived of as providing additional capital to the direct investment enterprise and they appear both as an item of the income account and, as they contribute to FDI flows, as an item of the financial account.
Eurostat, "European Union foreign direct investment yearbook 2007 - Data 2001 - 2005", Office for Official Publications of the European Communities, Luxembourg, 2007