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In table 30.14, levels of investment are categorised by direction (Australian investment abroad and foreign investment in Australia), type of investment (direct, portfolio, financial derivatives, 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 an 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 30.14 do not equate with foreign assets and liabilities respectively in table 30.12. 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 30.14, are netted off in that table against liabilities to direct investors. These items are not netted off in table 30.12.
At 30 June 2002, Australian investment abroad totalled $453.9b, down $8.3b (1.8%) on the level a year earlier. This drop was the net effect of a $28.4b decrease in direct investment abroad, a $9.2b increase in portfolio investment assets, a $6.2b increase in financial derivative assets, a $5.2b increase in other investment assets and a $0.5b decrease in reserve assets.
Foreign investment in Australia totalled $844.4b at 30 June 2002, up $21.2b (2.6%) on June 2001. This rise was due to a $9.8b increase in direct investment in Australia, a $2.4b decrease in portfolio investment liabilities, a $7.3b increase in financial derivative liabilities and a $6.4b increase in other investment liabilities.
30.14 LEVELS OF AUSTRALIAN INVESTMENT ABROAD AND FOREIGN INVESTMENT IN AUSTRALIA - At 30 June
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 | | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 |
| | $m | $m | $m | $m | $m | $m |
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| Levels of Australian investment abroad | -221,545 | -290,293 | -313,359 | -410,484 | -462,154 | -453,877 |
| Direct investment abroad(a) | -88,999 | -125,580 | -129,465 | -178,284 | -181,788 | -153,371 |
| Equity capital and reinvested earnings | -87,860 | -124,085 | -128,988 | -179,786 | -179,189 | -152,256 |
| Other capital | -1,139 | -1,494 | -477 | 1,502 | -2,599 | -1,115 |
| Claims on affiliated enterprises | -4,620 | -5,050 | -5,496 | -6,496 | -12,250 | -9,788 |
| Liabilities to affiliated enterprises | 3,481 | 3,555 | 5,020 | 7,998 | 9,651 | 8,673 |
| Portfolio investment assets | -61,164 | -71,962 | -87,196 | -126,738 | -150,041 | -159,269 |
| Equity securities | -47,691 | -56,254 | -67,025 | -102,271 | -119,058 | -126,103 |
| Debt securities | -13,474 | -15,708 | -20,171 | -24,467 | -30,983 | -33,166 |
| Financial derivative assets | -9,265 | -14,357 | -15,529 | -18,658 | -23,802 | -30,030 |
| Other investment assets | -39,326 | -54,134 | -57,215 | -58,856 | -68,571 | -73,772 |
| Trade credits | -8,188 | -9,658 | -10,106 | -9,984 | -9,620 | -9,924 |
| Loans and other assets | -26,293 | -37,427 | -39,587 | -41,779 | -48,538 | -52,002 |
| Currency and deposits | -4,844 | -7,049 | -7,522 | -7,093 | -10,413 | -11,845 |
| Reserve assets | -22,791 | -24,260 | -23,954 | -27,948 | -37,951 | -37,435 |
| Levels of foreign investment in Australia | 511,700 | 587,231 | 635,014 | 736,989 | 823,187 | 844,404 |
| Direct investment in Australia(b) | 150,827 | 162,371 | 174,478 | 195,679 | 201,060 | 210,909 |
| Equity capital and reinvested earnings | 130,190 | 138,943 | 152,753 | 171,305 | 171,009 | 177,649 |
| Other capital | 20,637 | 23,428 | 21,725 | 24,373 | 30,051 | 33,260 |
| Claims on direct investors | -4,743 | -5,680 | -6,785 | -7,542 | -11,746 | -9,701 |
| Liabilities to direct investors | 25,380 | 29,107 | 28,510 | 31,916 | 41,797 | 42,961 |
| Portfolio investment liabilities | 289,182 | 332,038 | 348,145 | 405,857 | 468,119 | 465,747 |
| Equity securities | 86,888 | 110,552 | 134,226 | 159,452 | 174,800 | 161,474 |
| Debt securities | 202,294 | 221,485 | 213,919 | 246,405 | 293,319 | 304,273 |
| Financial derivative liabilities | 10,221 | 15,040 | 17,826 | 21,431 | 23,591 | 30,910 |
| Other investment liabilities | 61,470 | 77,783 | 94,565 | 114,022 | 130,418 | 136,838 |
| Trade credits | 5,974 | 7,221 | 7,685 | 7,317 | 6,921 | 6,143 |
| Loans | 31,632 | 34,144 | 41,361 | 54,311 | 54,185 | 62,403 |
| Currency and deposits | 21,542 | 33,356 | 35,347 | 39,508 | 56,172 | 56,871 |
| Other liabilities | 2,322 | 3,061 | 10,172 | 12,886 | 13,139 | 11,421 |
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(a) Net direct investment abroad, after deduction of liabilities to direct investment enterprises abroad.
(b) Net direct investment in Australia, after deduction of claims of Australian direct investment enterprises on direct investors. |
Source: Balance of Payments and International Investment Position, Australia (5302.0). |
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