What Is Capital Inflow?

Capital inflows (inflows) are foreign capital flows into the country. There are four ways: foreign assets in the country increase. For example, foreign countries increase their stock investment in direct investment or indirect investment in their country. Foreign debt to home country has decreased. Such as foreign repayments to domestic debt or domestic reductions in foreign loans or bond investments. Increase of domestic debt to foreign countries. Such as foreign investment in domestic loans and bonds increased. The reduction of foreign assets in the country. Such as the reduction of foreign direct investment and stock investment in the country. The purpose of capital inflows is also to obtain higher profits or interest income. It can be divided into state capital inflows and private capital inflows according to the subject of the output capital. ^[1]