Dynamic linkages between foreign direct investment and domestic investment: evidence from emerging market economies
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...Studies have evidenced existence of strong linkages (Bosworth and Collins, 1999 and Jain et al., 2014), followed by studies that have indicated little association (Borensztein et al., 1998; Alfaro et al., 2009) few studies reporting negative effects (Lipsey, 2000; Apergis et al., 2006)....
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...While studies (Feldstein, 1995; Jain et al., 2014) have indicated negative relationship, Desai et al. (2005) reported that FDI outflow complements DI....
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...Literature on the long-run causal relationship between FDI flows (outflow and inflow) and domestic capital formation is scarce with studies indicating limited effect to bidirectional causality (Jain et al., 2014)....
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...This result goes against the commonly accepted view that FDI outflow displaces the domestic investment (Jain et al., 2014)....
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