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Net Capital Outflow

Last modified by
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Jul 31, 2023, 9:38:00 PM
Created by
on
May 30, 2015, 3:09:06 PM
`"Net Capital Outflow" = "fa" - "da" `
`(fa) "Foreign assets purchased by domestic residents"`
`(da) "Domestic assets purchased by foreign residents"`
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The Net Capital Outflow calculator computes the difference be a country's imports and exports.   Net Capital Outflow is defined as the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners. Net Capital Outflow (NCO) is also the net flow of funds being invested abroad by a country during a certain period of time (usually a year). A positive NCO means that the country invests outside more than the world invests in it and vice versa. NCO is one of two major ways of characterizing the nature of a country's financial and economic interaction with the rest of the world (the other being the Balance of Trade). Net Capital Outflow must always equal Net Exports. (see also Net Exports and Net Capital Overflow)  

Note: The values are in U.S. dollars (USD).  However, other currency units are available (e.g. South African Rand) via the pull-down menus.  The currency exchange rates are updated approximately every two minutes.


Macroeconomics Calculators

Resource:

 
  • Mankiw, N. Gregory. "Chapter 18:International Flows of Goods and Capital." Principles of Macroeconomics. 6th ed. Mason, OH: Thomson/South-Western, 2004. 376-80. Print.
  • "Net Capital Outflow." Wikipedia. Wikimedia Foundation, n.d. Web. 30 May 2015.

This equation, Net Capital Outflow, is used in 1 page
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