Does outward foreign direct investment crowd in or crowd out domestic investment in central, east and southeast europe countries? an asymmetric approach
Safet Kurtović (),
Nehat Maxhuni (),
Blerim Halili () and
Bujar Krasniqi ()
Additional contact information
Safet Kurtović: University of Travnik
Nehat Maxhuni: University Union Nikola Tesla
Blerim Halili: University Union Nikola Tesla
Bujar Krasniqi: KAF Institute for Accounting, Audit and Finance
Economic Change and Restructuring, 2022, vol. 55, issue 3, No 6, 1419-1444
Abstract The previous empirical literature, relevant to Central, East and Southeast European (CESEE) countries, has mostly examined the effect of inward FDI but neglected the effect of outward foreign direct investment (OFDI) on domestic investment. Domestic companies and local foreign subsidiaries owned by multinational companies are the main sources of OFDI from the CESEE countries. The growth in the volume of OFDI from CESEE countries is a consequence of strengthening the competitiveness of companies. Despite this, these countries are still net recipients of FDI, because they get significantly higher FDI inflow than FDI outflow. We used the nonlinear autoregressive distributed lag (NARDL) model, a sample of 13 CESEE countries and the annual data for the period from 1995 to 2019 in this study. In the long run, we found there to be an asymmetric effect from OFDI on the domestic investments of Bulgaria, Estonia, Latvia, Poland, Russia, Slovenia and the Ukraine. We also found that OFDI has a crowding-out effect on the domestic investment of Bulgaria, Poland and the Slovenia, while it has a crowding-in effect on the domestic investment of Estonia, Latvia, Ukraine and the Russia.
Keywords: Asymmetry; Outward FDI; Domestic investment; Crowding-in effect; Crowding-out effect (search for similar items in EconPapers)
JEL-codes: C22 F21 F23 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10644-021-09352-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:ecopln:v:55:y:2022:i:3:d:10.1007_s10644-021-09352-6
Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2
Access Statistics for this article
Economic Change and Restructuring is currently edited by George Hondroyiannis
More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().