Dynamic Linkages between FDI Inflows and Domestic Investment: A Panel Cointegration Approach
Atlantic Economic Journal, 34, pp. 385-394, 2006
Posted: 7 Jan 2013
Date Written: 2006
This paper analyzes the dynamic relationship between FDI inflows and domestic investment for a panel of selected countries by means of panel cointegration and causality techniques. Specifically, the paper provides empirical evidence regarding the existence of possible crowding in or crowding out effects between FDI inflows and domestic investment, accounting for the location and the level of development of the host countries.
Keywords: FDI inflows, domestic investment, panel cointegration
JEL Classification: C33, C51, F21
Suggested Citation: Suggested Citation