FDI and Domestic Investment: An Industry-Level View

Arndt Christian (), Claudia Buch and Monika Schnitzer ()
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Arndt Christian: University of Nürtingen

The B.E. Journal of Economic Analysis & Policy, 2010, vol. 10, issue 1, 22

Abstract: Previous empirical work on the link between domestic and foreign investment has provided mixed results. This may partly be due to the level of aggregation of the data. In this paper, we argue that the impact of FDI on the domestic capital stock depends on the structure of industries. Using industry-level data on the stock of German FDI, we test our predictions. We use panel cointegration methods which address the potential endogeneity of FDI. We find evidence for a positive long-run impact of FDI on the domestic capital stock.

Keywords: foreign direct investment; domestic capital stock; domestic investment (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (25)

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Related works:
Working Paper: FDI and Domestic Investment: An Industry-Level View (2010)
Working Paper: FDI and Domestic Investment: An Industry-Level View (2007)
Working Paper: FDI and Domestic Investment: An Industry-Level View (2007)
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DOI: 10.2202/1935-1682.2295

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