Economics, Foreign Direct Investment (FDI) €

Economics, Foreign Direct Investment (FDI)

I read an article about the flow of FDI in 2020 for Bulgaria.

Then I decided to fact-check the statements in the article.

The article says:

 "In 2020, we have reached a record flow of foreign direct investment

They are BGN 4.2 billion, which is the highest value for the last 10 years."

The latest public statistics on the pages of Bulgarian National Bank data shows:

The red amount is 4.162 which is approximately equal to ≈ 4.2 as the article mentioned.

That research cost me about 1 hour in finding the right source and the right data.

After the fact became more clear I ask my self the questions:

• What the FDI flows mean for sustainable growth? 
• Which categories of the FDI are good for one country? 
• What part of the FDI flows are real economy investments?
• More FDI = more prosperity for the people?

What is FDI net inflow?

A text is from the page at World Bank.

"FDI net inflows are the value of inward direct investment made by non-resident investors in the reporting economy."

What are the FDI flows? 

A text is from the source: https://data.oecd.org/fdi/fdi-flows.htm

"Foreign Direct Investment (FDI) flows record the value of cross-border transactions related to direct investment during a given period of time, usually a quarter or a year. Financial flows consist of equity transactions, reinvestment of earnings, and intercompany debt transactions."