IDEAS home Printed from https://ideas.repec.org/p/bfr/econot/84.html
   My bibliography  Save this paper

Does FDI crowd out domestic investment?
[Y a-t-il un effet d’éviction des IDE sur l’investissement local ?]

Author

Listed:
  • Cristina Jude

Abstract

Foreign direct investment (FDI) inflows are often considered a complement to domestic savings that facilitate the financing of local investment projects. However, as a result of increased competition, they tend to crowd out domestic investment in transition countries in the short term. This effect is mitigated if local financial markets are sufficiently developed. Les flux d’investissement direct étranger (IDE) sont souvent assimilés à un complément à l’épargne domestique qui faciliterait le financement des projets locaux d’investissement. Toutefois, du fait de l’accroissement de la pression concurrentielle, ils exercent, à court terme, un effet d’éviction sur l’investissement domestique dans les pays en transition. Cet effet est atténué si les marchés financiers locaux sont suffisamment développés.

Suggested Citation

  • Cristina Jude, 2018. "Does FDI crowd out domestic investment? [Y a-t-il un effet d’éviction des IDE sur l’investissement local ?]," Eco Notepad (in progress) 84, Banque de France.
    • Handle: RePEc:bfr:econot:84
    as

    Download full text from publisher

    File URL: https://www.banque-france.fr/en/publications-and-statistics/publications/does-fdi-crowd-out-domestic-investment
    Download Restriction: no
    File URL: https://www.banque-france.fr/fr/publications-et-statistiques/publications/y-t-il-un-effet-deviction-des-ide-sur-linvestissement
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bfr:econot:84. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael brassart (email available below). General contact details of provider: https://edirc.repec.org/data/bdfgvfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.