Determinants and Effects of Foreign Direct Investments in Austria: New Insights from Microdata

Client/Funding Institution

Austrian Ministry for Digital and Economic Affairs

Abstract

Foreign direct investment (FDI) will play an essential role in the recovery from the Corona crisis and the transformation towards a climate-neutral economy: Economists agree that global climate targets will not be achievable without a substantial increase in FDI flows. On the other hand, there is also growing concern about possible negative effects of FDI, especially in the case of takeovers of Austrian companies by foreign investors. Based on data at the transaction or company level, questions of the causes and effects of FDI in Austria are to be examined. To this end, the study will first estimate or describe the significance of the determinants of FDI commonly found in the literature for those in Austria. In a second part, the effects of these foreign investments for Austria as a business location will be quantitatively examined in terms of variables such as jobs, productivity, innovation, diversity or R&D activities.

Duration

October 2021 - February 2022

wiiw team Leader

Mahdi Ghodsi

wiiw Staff

Birgit Buschbom, Branimir Jovanović, Robert Stehrer

Publications

Keywords: Foreign direct investment, microdata

Countries covered: Austria

Research Areas: International Trade, Competitiveness and FDI

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