Abstract
What does a firm from an industrialised country (for example, a German firm) take to a developing country (for example, Eastern Europe) when it invests in those markets? Is it merely a shift in control from an East European to a German owner or is more involved? What is actually transferred from the rich country to the relatively poor country as a result of foreign direct investment (FDI) in terms of financial capital, ideas and production capacity? Is the German firm relocating economic activity from Germany to Eastern Europe or, in investing in Eastern Europe, is it adding new activity not previously undertaken in Germany? These issues associated with FDI have become controversial in both developed and developing countries. These issues are important because the economic effects of FDI on the home and host country will differ depending on what is actually transferred.
We would like to thank Matthew Slaughter, Colin Mayer and the editor, Heins Herrmann, for helpful comments.
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Marin, D., Lorentowicz, A., Raubold, A. (2003). Ownership, Capital or Outsourcing: What Drives German Investment to Eastern Europe?. In: Herrmann, H., Lipsey, R. (eds) Foreign Direct Investment in the Real and Financial Sector of Industrial Countries. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24736-4_6
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DOI: https://doi.org/10.1007/978-3-540-24736-4_6
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