Foreign direct investment

Authors Isaksen, Jacob; Kramp, Paul Lassenius; Klausen, Sanne Veje
Subject Danish Economy; Balance of payments; Balance of payments! foreign trade and external debt; Capital flows and direct investments
Type Monetary Review  
Year 2016
Published 11 May 2016
Link to publication Monetary review, 1st Quarter 2016
Abstract icon Over the last 30-40 years, the extent of FDI has expanded rapidly, both globally and in Denmark. This has enabled firms to expand more than if they operated solely within the borders of a single country. Very large Danish firms, especially in the industrial sector, are the main Danish investors abroad, especially in Denmark's trading partner countries. FDI generates substantial investment income. FDI abroad is found to neither crowd out nor stimulate domestic investment to any substantial extent.