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Net Capital Outflow (NCO)

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PPG Portal Supplementary Resources > PPG Glossary > N > Net Capital Outflow (NCO)
 

Net Capital Outflow (NCO) 

The quantity of foreign assets purchased by residents of a given country in a particular year, minus the quantity of domestic assets in that country purchased by foreigners in that same year.

(Mankiw, N. Gregory, Ronald Kneebone, Kenneth J. McKenzie and Nicholas Rowe. 2008. Principles of Macroeconomics, 4th Canadian ed. Toronto: Thomson Nelson.