Abstract
This paper estimates the effects of outward FDI on domestic business investment in Germany at the industry level for a panel of 19 industry and 10 services sectors. We pay particular attention to the different motivations behind FDI, and distinguish between FDI to high-versus low-wage countries, to Europe versus the rest of the world, and FDI in services and industry sectors.We find that, in industry, FDI to low-wage countries crowds out domestic investment, whereas FDI to high-wage countries outside Europe crowds in domestic investment. In services, FDI to Western Europe crowds in domestic investment.
| Original language | English |
|---|---|
| Pages (from-to) | 429-448 |
| Journal | International Review of Applied Economics |
| Volume | 27 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - Jul 2013 |
Keywords
- Economics and econometrics