DITEG Issues Paper # 2, 10 Per Cent Threshold - Employment - Prepared by Directorate for Financial and

DITEG - 2 IMF COMMITTEE ON BALANCE OF PAYMENTS STATISTICS AND OECD WORKSHOP ON INTERNATIONAL INVESTMENT STATISTICS DIRECT INVESTMENT TECHNICAL EXPERT GROUP (DITEG) ___________________________________________________________________________ ISSUES PAPER # 2 DIRECT INVESTMENT – 10 PERCENT THRESHOLD OF VOTING POWER/EQUITY OWNERSHIP, EMPLOYMENT The views expressed in this paper are those of the authors and do not necessarily represent those of the Service Centrale de la Statistique et des Etudes Economiques, Luxembourg. Prepared by Directorate for Financial and Enterprise Affairs, Investment Division, OECD and Service Centrale de la Statistique et des Etudes Economiques, Luxembourg April 2004 1DITEG - 2 1. Direct Investment – 10 percent threshold of voting power/equity ownership, employment 2. Current international standards: Definition of direct investment th1. The IMF Balance of Payments Manual, 5 edition (BPM5) and the OECD Benchmark Definition rdof Foreign Direct Investment, 3 edition (Benchmark Definition) are largely consistent with regard to basic principles used for the definition of direct investment, direct investor, and direct investment enterprise. Direct investment is based on the concept of ownership; it does not require the control of the direct investment enterprise by the direct investor. The underlying motivation of the direct investor distinguishes direct ...