Outward FDI and Domestic Investment

Dierk Herzer and Mechthild Schrooten

No 679, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

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.

Keywords: Foreign Direct Investment; Investment; Open Economy Macroeconomics (search for similar items in EconPapers)
JEL-codes: E22 F21 F41 (search for similar items in EconPapers)
Pages: 14 p.
Date: 2007
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp679

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