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Outward FDI and domestic investment in two industrialized countries

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  • Herzer, Dierk
  • Schrooten, Mechthild

Abstract

Using cointegration techniques, we find that in the US, outward FDI has positive long-run effects on domestic investment. In Germany, this complementary relationship exists only in the short run. In the long run, outward FDI substitutes for German domestic investment.

Suggested Citation

  • Herzer, Dierk & Schrooten, Mechthild, 2008. "Outward FDI and domestic investment in two industrialized countries," Economics Letters, Elsevier, vol. 99(1), pages 139-143, April.
    • Handle: RePEc:eee:ecolet:v:99:y:2008:i:1:p:139-143
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