Definition: Lasting interest

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The concept of lasting interest is the backbone of the concept of foreign direct investment (FDI). It implies the existence of a long-term relationship where the direct investor residing in one country has a significant degree of influence on (or "effective voice in") the management of the direct investment enterprise residing in another country. In practical terms, the IMF and OECD recommend that an ownership of at least 10 per cent of the ordinary shares or voting rights of an incorporated enterprise or the equivalent of an unincorporated enterprise, evidences such a relationship.