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Outward FDI and Domestic Investment

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This paper examines the impact of outward foreign direct investment (OFDI) on domestic investment by applying co-integration techniques to macroeconomic time series data for the United Sates and Germany. We show that the two countries differ: In the case of the US, OFDI has positive long-run effects on domestic investment while in the case of Germany the reverse effect is reported.

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Dierk Herzer, Mechthild Schrooten

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Adapt according to the presented license agreement and reference the original author.