net property income from abroad

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The excess of property incomes received from abroad over property incomes paid to non-residents. Property incomes include rent, dividends, and interest remitted from abroad plus the retained profits of companies operating direct investment abroad. In practice, company profits earned abroad and reinvested, which should be counted both as receipts of property income and as capital outflows, tend to get omitted from balance-of-payments statistics, so net property income from abroad is subject to error.

Subjects: Economics.

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