Does foreign direct investment crowd in or crowd out domestic investment?

In this article, we attempt to estimate whether foreign direct investment in the Czech Republic, Hungary, and Poland crowds in or crowds out domestic investment. We used a model of total investment that introduced, from the point of view of the recipient country, foreign direct investment as an exogenous variable. We found that for the time period 1990-2000 there was evidence of a crowding-out effect in Poland. For the time period 19902000 in Hungary and for the time period 1993-2000 in the Czech Republic, we found a crowding-in effect.