J. Mišun, Vladimr Tomšk
2002.3.1EASTERN EUROPEAN ECONOMICS
tlooto Summary
Foreign direct investment affects domestic investment, with a crowding-out effect in Poland and crowding-in effects in Hungary and Czech Republic between 1990-2000.
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.
Citation format
MIŠUN, J.; TOMŠK, Vladimr. Does foreign direct investment crowd in or crowd out domestic investment? EASTERN EUROPEAN ECONOMICS, 2002, 40: 38–56.