Stitch: Technically, yes. But not all.
I can't be specific at the moment, but guidelines certainly do
include securities in foreign direct investment. Though, if I
recall correctly, the invested amount must be substantial (i.e.
there's a cutoff). FDI, as recorded in the nation's current account,
also involves a number of determinants. My purchases are not
showing-up in anyone's FDI numbers, yet.
So, I guess a truer response to Mike's question on the US$3 billion
FDI would have been, "Doubtful."
When someone desires direct investment, they're usually not
considering the equities market. At least not in the traditional
sense.
Three (3) reasons for prefering direct investment:
1) To circumvent an overvalued equities market.
2) To gain a larger participation in a sector of the economy
which the securities markets either do not support, or do not
support to the extent of the investor's desired involvement.
3) To satisfy the desire for a guaranteed/contracted return on
invested capital. |
