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Does Foreign Direct Investment Crowd in or Crowd out Domestic Investment?

Jan Mišun and Vladimr Tomšk

Eastern European Economics, 2002, vol. 40, issue 2, 38-56

Abstract: In this article, we attempt to estimate whether foreign direct investment in the Czech Republic, Hungary, and Poland crowds in or crowds out domestic investment. We used a model of total investment that introduced, from the point of view of the recipient country, foreign direct investment as an exogenous variable. We found that for the time period 1990-2000 there was evidence of a crowding-out effect in Poland. For the time period 1990- 2000 in Hungary and for the time period 1993-2000 in the Czech Republic, we found a crowding-in effect.

Date: 2002
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