What would be the impact if BEA reclassified receipts of direct investment income to exports of services?
• It has often been argued the U.S. receipts of income on direct investment abroad include a “premium” arising from superior U.S. management services or intellectual property rights. However, a simple reclassification of receipts from income on direct investment abroad to U.S. exports of services would result in offsetting changes within the current account. The balance on the current account would therefore be unaffected.
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- What would be the impact if BEA reclassified receipts of direct investment income to exports of services?
- Do gross receipts include investment income and other forms of passive income?
