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FDI and domestic investments in Germany: crowding in or out?

FDI and domestic investments in Germany: crowding in or out?

Onaran, Özlem ORCID: 0000-0002-6345-9922, Stockhammer, Engelbert and Zwickl, Klara (2013) FDI and domestic investments in Germany: crowding in or out? International Review of Applied Economics, 27 (4). pp. 429-448. ISSN 0269-2171 (Print), 1465-3486 (Online) (doi:10.1080/02692171.2012.752444)

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Abstract

This paper estimates the effects of outward FDI on domestic business investment in Germany at the industry level for a panel of 19 industry and 10 services sectors. We pay particular attention to the different motivations behind FDI, and distinguish between FDI to high-versus low-wage countries, to Europe versus the rest of the world, and FDI in services and industry sectors.We find that, in industry, FDI to low-wage countries crowds out domestic investment, whereas FDI to high-wage countries outside Europe crowds in domestic investment. In services, FDI to Western Europe crowds in domestic investment.

Item Type: Article
Uncontrolled Keywords: domestic capital formation, foreign direct investment, cost seeking, market seeking, Germany
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HJ Public Finance
Pre-2014 Departments: School of Business
Related URLs:
Last Modified: 14 Oct 2016 09:26
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
URI: http://gala.gre.ac.uk/id/eprint/11197

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