Canada's Balance of International Payments

Balance of international payments, investment income of economy, category

Balance of international payments, Investment income refers to income receivable by the owner of a financial asset in return for providing funds to another institutional unit. The terms governing the payment of investment income are usually specified in the financial instrument created when the funds are transferred from the creditor to the debtor. Such arrangements are typically made only for a limited period of time, after which the funds must be returned. In the context of the balance of international payments, transactions are made between residents and non-residents.

Economy refers to the entire set of resident institutional units. It is divided into sectors that consists of groups of resident institutional units. An institutional unit is resident in a country when it has a centre of economic interest in the economic territory of that country. It is said to have a centre of economic interest when there exists some location - dwelling, place of production or other premises - within the economic territory on, or from, which it engages, and intends to continue to engage, in economic activities and transactions on a significant scale either indefinitely or over a finite period of time.

The data for this variable are reported using the following classifications and/or lists:

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