Inbound Capital Flow

Definition

Inbound capital flow refers to the movement of financial resources from foreign countries into a domestic economy. It includes investments, loans, and purchases of assets made by foreign individuals or entities in the domestic market.

Related terms

Outbound Capital Flow: Outbound capital flow is the opposite of inbound capital flow. It refers to the movement of financial resources from a domestic economy to foreign countries.

Foreign Direct Investment (FDI): FDI is a type of inbound capital flow that involves long-term investments made by foreign companies in domestic businesses or infrastructure.

Portfolio Investment: Portfolio investment is another form of inbound capital flow where foreign investors buy stocks, bonds, or other securities in domestic companies without actively participating in their management.