Foreign Investment in the National Income Accounts

The current magnitudes of foreign investment (both on a cumulated-stock and annual-flow basis) call into question the treatment of the foreign investment sector in the U.S. national income accounts. While not a very significant problem, say, 20 years ago, the dimensions of U.S. investment abroad, both in absolute terms and in relation to the U.S. economy now call for further statistical recognition than given in the national income accounts, where foreign-investment income-earning activities are only partly included and those flows which are included are netted out and shown in insufficient detail

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