Abstract copyright UK Data Service and data collection copyright owner.
The Annual Inquiry into Foreign Direct Investment (AFDI) collects financial data concerning Foreign Direct Investment (FDI). The survey is conducted in two parts: the inward FDI relates to foreign investment into the UK from foreign parent or subsidiary companies, while the outward FDI relates to investment by UK-based companies to their overseas parents or subsidiary companies. In particular, the AFDI surveys UK companies about their relationship with oversees affiliates in terms of flows of investment, earnings from investment and international investment positions. Companies are restricted to those where the foreign investment amounts to at least 10 percent of the ordinary shares or voting power. Two files are available for each year: for inward and outward FDI, respectively. Data on earnings for subsidiaries and branches are available, as well as transactions between UK companies and their foreign subsidiaries or parent companies, including transfers of capital. These data are useful to researchers who wish to analyse the relationship between UK companies and overseas-based parent companies or subsidiaries. The data are also useful for broader research into firm-level activity and foreign direct investment. Surveys are sent to enterprise group 'heads' (i.e. the headquarters of a company, which in turn may own a number of smaller companies) based in the UK. The register from which the firms are sampled comes from sources including HM Customs and Revenue, Dunn and Bradstreet's 'Worldbase' system, and ONS inquiries on Acquisitions and Mergers. Sampling is stratified and based on the value of the net investment position of the foreign affiliates (outward FDI) or the UK group (inward FDI). The sample is heavily weighted towards larger enterprise groups, which account for the vast majority of FDI assets. The largest firms all receive the survey forms, while only a proportion of the smaller firms receive the forms. The sample is rotated each year for the smaller firms. Data are collected on both the UK company and its foreign affiliate(s), which may be the overseas-based parent company or an overseas-based subsidiary. Linking to other business studies These data contain Inter-Departmental Business Register reference numbers. These are anonymous but unique reference numbers assigned to business organisations. Their inclusion allows researchers to combine different business survey sources together. Researchers may consider applying for other business data to assist their research. Latest edition information For the eighth edition (July 2021), the data files for 2017 have been updated, and the provisional data files for 2018 and 2019 have been added to the study.
Main Topics:
For each company in the survey, information is collected on their foreign affiliate(s) with regard to:country and industry of operationpercentage of equity held (either by the UK company in its foreign subsidiary, or by the foreign parent company in its UK company)operating profits (of the UK company and its affiliate)transactions and flows of equity capital (e.g. payments made to the UK by its foreign parent company, or by the UK to its foreign subsidiary)acquisitions and disposals of equity capital (by the foreign parent to its UK subsidiary, or by the UK company to its foreign subsidiary)levels of investment (by the foreign parent to its UK subsidiary, or by the UK company to its foreign subsidiary), including: reinvestment of earnings; capital reserves; loans; current account balances
One-stage stratified or systematic random sample
Postal survey
