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Content

1. Introduction
2. Summary
2.1. International methodology
2.2. Recording reinvested earnings in the balance of payments
2.3. The Hungarian approach
2.3.1. Steps of processing questionnaires on direct investment capital
2.3.2. The method of data compilation on foreign direct investment between 1995-2005
3. Developments in direct investments
3.1. Direct investment by non-residents in Hungary
3.2. Direct investment by residents abroad

TABLES
Notes to tables
4. Tables in euros
4.1. Summary tables
4.2. Direct investment in Hungary
4.2.1. Transactions by countries
4.2.2. Stocks by countries
4.2.3. Transactions by economic activities
4.2.4. Stocks by economic activities
4.3. Direct investment abroad
4.3.1. Transactions by countries
4.3.2. Stocks by countries
4.3.3. Transactions by economic activities
4.3.4. Stocks by economic activities
4.4. Direct investment income
4.4.1. Income by countries
4.4.2. Income by economic activities
5. Tables in forints
5.1.Summary tables
5.2. Direct investment in Hungary
5.2.1. Transactions by countries
5.2.2. Stocks by countries
5.2.3. Transactions by economic activities
5.2.4. Stocks by economic activities
5.3. Direct investment abroad
5.3.1. Transactions by countries
5.3.2. Stocks by countries
5.3.3. Transactions by economic activities
5.3.4. Stocks by economic activities
5.4. Direct investment income
5.4.1. Income by countries
5.4.2. Income by economic activities

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Introduction

This booklet, called Direct Investment Statistics, Hungary 1995-2005, is the update of the booklet of Direct Investment Statistics, Hungary 1995-2003 that was published in March 2004 on the website of the MNB.

Changes in this document are (1) recording of special purpse entities (SPE-s) in the Balance of Payments Statistics (Chapter 2.3.1). Furthermore, the method of the estimation of reinvested earnings has changed (Chapter 2.3.2). Chapter 3 has been updated with 2005 data based on corporate FDI questionnaires.

MNB intends to give a summary of the current international methodology of FDI in the BoP statistics and its Hungarian application.

FDI statistics were complied on the basis of corporate questionnaires since 1999. Therefore, data broken down by economic activities and countries, as well as information on reinvested earnings are available since then. While the MNB has revised the time series back to 1995 in order to include reinvested earnings at the time of the first release in 2004, the industry and country breakdown are available only from the commencement of statistical data collection or from 2001. The most recent data recorded on the basis of the questionnaires date from 2005.

The publication is divided into two parts. The first part gives a methodological overview of the relevant international balance of payments statistical methodology and the MNB's practice, with more specific details of reinvested earnings and a brief analysis of the trends of 1995-2005 data. The second part contains statistical tables arranged in four chapters. The summary time series tables in Chapter 1 include annual data for 1995-2006, which present the transactions, stocks and related earnings in both directions of investment, i.e. non-residents' investments in Hungary and residents' investments abroad. Detailed country- and economic activity breakdown of FDI positions and transactions of non-residents' direct investments in Hungary are given in Chapter 2, those relevant to residents' direct investments abroad are included in Chapter 3 and, finally, Chapter 4 shows FDI income in the same breakdown. Every table is compiled both in million euros and in million forints. The tables can be accessed in Excel format separatedly in the website of the MNB below this Publication and below of the publications of Balance of Payments Statistics.

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