FDI and Domestic Investment: An Industry-Level View

Christian Arndt, Claudia Buch and Monika Schnitzer (schnitzer@lrz.uni-muenchen.de)

Munich Reprints in Economics from University of Munich, Department of Economics

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

Date: 2010
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Citations: View citations in EconPapers (25)

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Related works:
Journal Article: 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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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:20186

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