Australia Yearbook - 2001

Chapter 30—International accounts and trade 1019
Levels of Australian investment
abroad and foreign investment in
Australia
In table 30.15, levels of investment are
categorised by direction (Australian investment
abroad and foreign investment in Australia), type
of investment (direct, portfolio, other and reserve
assets) and instrument.
Direct investment is a category of international
investment that reflects the objective of obtaining
a lasting interest by a resident in one economy in
an enterprise in another economy, and implies a
significant degree of influence by the investor in
the management of the enterprise. A direct
investment relationship is established when a
direct investor, who is a resident in one economy,
holds 10% or more of the ordinary shares or
voting stock of an enterprise (direct investment
enterprise) in another economy. The portfolio
investment category covers investment in equity
and debt securities (other than direct investment
and reserve assets).
The items Australian investment abroad and
Foreign investment in Australia in table 30.15 do
not equate with foreign assets and liabilities
respectively in table 30.13. The difference is due
to netting of assets and liabilities in regard to
direct investment, both abroad and in Australia.
Claims by direct investment enterprises on their
direct investors, separately identified in table
30.15, are netted off in that table against liabilities
to direct investors. These items are not netted off
in table 30.13.
At 30 June 2000, Australian investment abroad
totalled $287.4b, up 12% on the level a year
earlier. This rise was the net effect of a
$6.3b increase in direct investment abroad,
a $19.3b increase in portfolio investment assets, a
$1.7b increase in other investment
assets and a $4.0b increase in reserve assets.
Foreign investment in Australia totalled $691.2b
at 30 June 2000, up 13% on June 1999. This rise
was due to a $21.6b increase in direct investment
in Australia, a $42.4b increase in portfolio
investment liabilities, and a $13.9b increase in
other investment liabilities. The increase in
portfolio investment liabilities was attributable to
significant increases in both equity ($14.9b) and
debt securities ($27.5b).