Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104098
Authors: 
Marin, Dalia
Lorentowicz, Andzelika
Raubold, Alexander
Year of Publication: 
2002
Series/Report no.: 
Munich Discussion Paper 2002-3
Abstract: 
The paper takes a first look at the host and home country effects of German FDI in Eastern Europe (EE) based on new survey data of 1050 investment projects in EE by 420 German multinationals during the 1990s. We find that German investors transfer a substantial amount of financial capital to EE. Furthermore, the most dynamic and innovative segment of the German economy invests in the East which explains why single owned firms dominate as the form of control. We also find strong evidence of vertical FDI suggesting that German cororations are outsourcing a substantial share of their production to EE affiliates to exploit lower wages in the East.
Subjects: 
capital flows
vertical vs. horizontal FDI
corporate governance
globalization
Eastern Enlargement
JEL: 
F15
F21
G32
G34
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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