One way at looking at the importance of FDI inflows is to express them as a percentage of:

Question

Quizplus · Accepted Answer

FDI inflows are often expressed as a percentage of gross fixed capital formation (GFCF), which represents the total investment made in fixed assets such as machinery, equipment, and buildings. GFCF is an important indicator of a country's economic growth and development, and FDI inflows can contribute significantly to this process by providing capital, technology, and expertise to local businesses. By measuring FDI inflows as a percentage of GFCF, policymakers can assess the degree to which these investments are contributing to the growth and development of the economy.

One Way at Looking at the Importance of FDI Inflows