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

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  • Jan Mišun
  • Vladimr Tomšk

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.

Suggested Citation

  • Jan Mišun & Vladimr Tomšk, 2002. "Does Foreign Direct Investment Crowd in or Crowd out Domestic Investment?," Eastern European Economics, Taylor & Francis Journals, vol. 40(2), pages 38-56, March.
  • Handle: RePEc:mes:eaeuec:v:40:y:2002:i:2:p:38-56
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    Citations

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    Cited by:

    1. Krüger, Ralf & Ahlfeld, Sebastian, 2005. "Ausländische Direktinvestitionen in Entwicklungsländern: Eine überschätzte Wachstumsdeterminante?," Discussion Papers in Development Economics 31, Justus Liebig University Giessen, Institute for Development Economics.
    2. M. Taner Yigit & Ali M. Kutan, 2004. "Effects of Transition and Political Instability on Foreign Direct Investment Inflows : Central Europe and the Balkans," Working Papers 0407, Department of Economics, Bilkent University.
    3. SAGLAM, B. Bayraktar & Yalta, A.Y, 2011. "Dynamic Linkages Among Foreign Direct Investment, Public Investment And Private Investment: Evidence From Turkey," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).
    4. Manop Udomkerdmongkol & Sra Chuenchoksan & Nutthikarn Vorasa-ngasil, 2010. "Investment in Thailand: How to unleash the new investment cycle?," Working Papers 2010-05, Monetary Policy Group, Bank of Thailand.
    5. Manop Udomkerdmongkol & Oliver Morrissey, 2008. "Political Regime, Private Investment, and Foreign Direct Investment in Developing Countries," WIDER Working Paper Series RP2008-109, World Institute for Development Economic Research (UNU-WIDER).

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