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Abstract copyright UK Data Service and data collection copyright owner.The Annual Inquiry into Foreign Direct Investment (AFDI) collects financial data concerning Foreign Direct Investment (FDI). The survey is conducted in two parts: the inward FDI relates to foreign investment into the UK from foreign parent or subsidiary companies, while the outward FDI relates to investment by UK-based companies to their overseas parents or subsidiary companies. In particular, the AFDI surveys UK companies about their relationship with oversees affiliates in terms of flows of investment, earnings from investment and international investment positions. Companies are restricted to those where the foreign investment amounts to at least 10 percent of the ordinary shares or voting power. Two files are available for each year: for inward and outward FDI, respectively. Data on earnings for subsidiaries and branches are available, as well as transactions between UK companies and their foreign subsidiaries or parent companies, including transfers of capital. These data are useful to researchers who wish to analyse the relationship between UK companies and overseas-based parent companies or subsidiaries. The data are also useful for broader research into firm-level activity and foreign direct investment. Surveys are sent to enterprise group 'heads' (i.e. the headquarters of a company, which in turn may own a number of smaller companies) based in the UK. The register from which the firms are sampled comes from sources including HM Customs and Revenue, Dunn and Bradstreet's 'Worldbase' system, and ONS inquiries on Acquisitions and Mergers. Sampling is stratified and based on the value of the net investment position of the foreign affiliates (outward FDI) or the UK group (inward FDI). The sample is heavily weighted towards larger enterprise groups, which account for the vast majority of FDI assets. The largest firms all receive the survey forms, while only a proportion of the...