Definition: Direct Investment Capital

Balance of Payments, IMF

Direct Investment Capital is (i) capital provided (either directly or through other related enterprises) by a direct investor to a direct investment enterprises or (ii) capital received from a direct investment enterprise by a direct investor. For the economy in which the investment is located, such capital includes funds provided directly by the direct investor and funds provided by other direct investment enterprises associate with the same direct investor. For the economy of the direct investor, such capital included only funds provided by the resident investor. Direct investment capital does not include funds provided by, or received from, any other source.
International Monetary Fund (IMF), "Balance of Payments Manual" (BOP), Fifth Edition, Washington D.C., 1993

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