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

Onaran, Ozlem, Stockhammer, Engelbert and Zwickl, Klara (2013) FDI and domestic investment in Germany: crowding in or out? International Review of Applied Economics, 27(4), pp. 429-448. ISSN (print) 0269-2171

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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
Research Area: Economics and econometrics
Faculty, School or Research Centre: Faculty of Arts and Social Sciences (until 2017) > School of Economics, History and Politics (from November 2012)
Depositing User: Engelbert Stockhammer
Date Deposited: 08 Jul 2014 13:09
Last Modified: 08 Jul 2014 13:09
DOI: https://doi.org/10.1080/02692171.2012.752444
URI: http://eprints.kingston.ac.uk/id/eprint/28549

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