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FDI and Domestic Capital Stock in US Manufacturing Industries: Crowding-Out and Displacement Effects

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dc.contributor.author Mullen, John K. en
dc.date.accessioned 2010-11-26T15:06:51Z en
dc.date.available 2010-11-26T15:06:51Z en
dc.date.issued 2010 en
dc.identifier.citation Mullen, J.K. (2010) FDI and Domestic Capital Stock in US Manufacturing Industries: Crowding-Out and Displacement Effects (Working Paper No. 0160) Department of Economics, National University of Ireland, Galway. en
dc.identifier.uri http://hdl.handle.net/10379/1446 en
dc.description.abstract The global financial crisis has witnessed a dramatic slowdown in FDI flows, yet concerns over its possible impacts on investment and employment in home and host economies have actually intensified. Although weakened national economies may be a source of many such concerns, research has yet to clarify many of the consequences of bi-directional FDI flows. Inward FDI is often prized by policymakers based on the belief that it results in job creation and technology transfer, but unresolved issues remain. For example, its role as a catalyst in local investment is unsettled, despite the general positive effect it has on domestic productivity. Evidence on the "crowding-in" vs. "crowding-out" hypothesis concerning FDI¿s impact on domestic investment remains scarce. A common view of outward FDI is that it displaces local investment; however, some researchers note that the underlying motivation for this investment ultimately will determine its impact on source economies, with the possibility that favourable employment and investment effects could materialize. The present research provides empirical evidence on the crowding-out and displacement effects of bi-directional FDI, relying on disaggregated industry-level data for U.S. manufacturing industries from 1997 to 2007. en
dc.format application/pdf en
dc.language.iso en en
dc.publisher National University of Ireland, Galway en
dc.relation.ispartofseries Working papers;0160 en
dc.subject Economics en
dc.subject.lcsh Economics en
dc.title FDI and Domestic Capital Stock in US Manufacturing Industries: Crowding-Out and Displacement Effects en
dc.type Working Paper en
dc.description.peer-reviewed peer-reviewed en

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