Prague Economic Papers 2002, 11(1):57-66 | DOI: 10.18267/j.pep.188

Foreign direct investment in central europe - does it crowd in domestic investment?

Jan Mišun, Vladimír Tomšík
NEWTON Holding, a.s., Politických vězňů 10, CZ - 110 00 Prague 1 (e-mail: janmisun@centrum.cz, vladimir.tomsik@newton.cz).

In this article, we tried 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 an evidence of crowding out effect in Poland. In Hungary we found a crowding in effect for the time period 1990 - 2000 as well as for the Czech Republic for the time period 1993 - 2000.

Keywords: investment, foreign direct investment, investment incentives, crowding in effect, crowding out effect
JEL classification: F21, F23

Published: January 1, 2002  Show citation

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Mišun, J., & Tomšík, V. (2002). Foreign direct investment in central europe - does it crowd in domestic investment? Prague Economic Papers, 11(1), 57-66. doi: 10.18267/j.pep.188
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