IfW in the News

Germany needs to lure foreign investors in, not scare them off

03.10.2018

Holger Görg warns in his oped that the German government’s plan to tighten controls on foreign investment poses risks to its economy.

Excerpt from the Article

(...) The public debate about foreign investment centers on Chinese investors who are accused of wanting to obtain technological know-how and then take it back to China. That may be true in individual cases. But the positive impact of foreign investment also applies to capital injections from China – be it in terms of new investment opportunities, the unlocking of new markets, new financing possibilities, new management methods, new technologies or other advantages.

And don’t forget: When German companies invest in the US for example, they trigger a transfer of technologies and methods back to Germany. It’s part of an international economic interconnectedness that Germany, in particular, has profited from in recent decades. A country like Germany that is proud of its export strength should not — whether intentionally or accidentally — be deterring foreign investors by putting up obstacles to the inflow of capital.

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