Mr. Michael Taft:

Yes. However, there is a problem with the way the statistical agencies use the figure for foreign direct investment. The earnings of foreign companies that are reported in an economy but are not taken out - in other words, where money is coming in but is not taken out - are considered to be reinvested earnings, even though we have no idea how much is actually being reinvested. That makes up 60% of the FDI flow but, as we know, the bulk of that flow is into financial intermediation. Foreign direct investment is not investment into fixed assets.