Outward FDI and Domestic Investment

DIW Discussion Papers 679, 14 S.

Dierk Herzer, Mechthild Schrooten

2007. Mar.

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Published in: Economics Letters 99 (2008) Iss. 1, 139-143

Abstract

This paper examines the impact of outward foreign direct investment (OFDI) on domestic investment by applying co-integration techniques to macroeconomic time series data for the United Sates and Germany. We show that the two countries differ: In the case of the US, OFDI has positive long-run effects on domestic investment while in the case of Germany the reverse effect is reported.



JEL-Classification: F21;E22;F41
Keywords: Foreign Direct Investment, Investment, Open Economy Macroeconomics
Frei zugängliche Version: (econstor)
http://hdl.handle.net/10419/18411

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