Glossary "D"

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Direct investment. Investment in which a resident of one country obtains a lasting interest in, and a degree of influence over, the management of a business enterprise in another country. In the United States, the criterion used to distinguish direct investment from other types of investment is ownership of at least 10 percent of the voting securities of an incorporated business enterprise or an equivalent ownership interest of an unincorporated business enterprise. Related terms: Foreign direct investment in the United States (FDIUS), U.S. direct investment abroad (USDIA).

Direct investment capital flows. Funds that parent companies provide to their affiliates net of funds that affiliates provide to their parents. For U.S. direct investment abroad, capital flows also include funds that U.S. direct investors pay to unaffiliated foreign residents when foreign affiliates are acquired and funds that U.S. investors receive from them when foreign affiliates are sold. Similarly, for foreign direct investment in the United States, capital flows include funds that foreign direct investors pay to unaffiliated U.S. residents when U.S. affiliates are acquired and funds that foreign direct investors receive from them when U.S. affiliates are sold. Foreign direct investment in the United States capital flows also include debt and equity transactions between U.S. affiliates and members of their foreign parent groups other than their foreign parents. Direct investment capital flows consist of equity capital flows, intercompany debt, and reinvested earnings. Direct investment capital flows are components of the financial account (international). Related terms: Direct investment income, U.S. parent.

Direct investment income. Return that direct investors receive on their investment in affiliates abroad. It consists of the direct investors' share in the earnings of the affiliates, plus net interest on intercompany debt.

Direct investment position. The value of direct investors' equity in, and net outstanding loans to, their affiliates. The position may be viewed as the direct investors' net financial claims on their affiliates, whether in the form of equity (including retained earnings) or debt. Related terms: Direct investment, Direct investment position at current cost, Direct investment position at historical cost, Direct investment position at market value, Foreign affiliate, U.S. affiliate.

Direct investment position at current cost. A measure of the value of direct investors' equity in, and net outstanding loans to, their affiliates in which the equity portion of the position is valued based on the current cost of plant and equipment, land, and inventories. This measure values the direct investors' shares of the affiliates' investment in plant and equipment, using the current cost of capital equipment; in land, using general price indexes; and in inventories, using estimates of their replacement cost. Related terms: Direct investment, Direct investment position, Direct investment position at historical cost, Direct investment position at market value.

Direct investment position at historical cost. A measure of the value of direct investors' equity in, and net outstanding loans to, their affiliates in which the direct investors' investment is valued at book value. It largely reflects prices at the time of the investment rather than prices of the current period and is not ordinarily adjusted to reflect the changes in the current costs or the replacement costs of tangible assets or in stock market valuations of firms. Related terms: Direct investment, Direct investment position, Direct investment position at current cost, Direct investment position at market value, Foreign affiliate, U.S. affiliate.

Direct investment position at market value. A measure of the value of direct investors' equity in, and net outstanding loans to, their affiliates, in which the equity portion of the position is valued at current stock market prices. This measure revalues direct investors' equity based on indexes of stock market prices. Related terms: Direct investment, Direct investment position, Direct investment position at current cost, Direct investment position at historical cost, Foreign affiliate, U.S. affiliate.

Direct requirements table. A table in the input-output (I-O) accounts that shows the input of commodities that an industry requires to produce a dollar of output. It also shows the value-added components that an industry requires to produce a dollar of output. The input coefficients are referred to as direct-requirements coefficients. Related terms: Make table, Total requirements table, Use table.

Directly estimated method. Procedure for estimating Federal government purchases based on data from the budget and from the Monthly Treasury Statement.

Directly priced method. Procedure for estimating Federal government purchases by multiplying the delivered quantity by the price paid.

Disposable personal income. Total after-tax income received by persons; it is the income available to persons for spending or saving. Related terms: Personal consumption expenditures (PCE), Personal income, Personal saving.

Dividend. See Dividends

Dividend receipts from the rest of the world. Receipts received by U.S. residents of dividends from foreign corporations plus earnings distributed by unincorporated foreign affiliates to their U.S. parents.

Dividends. Payments in cash or other assets, excluding the corporation's own stock, made by corporations located in the United States and abroad to stockholders who are U.S. residents.

Double deflation. Technique for estimating real value added by industry in the gross domestic product (GDP)-by-industry accounts. Under this procedure, an industry's gross output and its intermediate inputs are deflated separately-hence, the term "double deflation." Real value added is then estimated as the difference between deflated, or real, gross output and real intermediate inputs.

Durable goods. Tangible products that can be stored or inventoried and that have an average life of at least three years. Related terms: Nondurable goods, Services, Structures.