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How Does Globalization Affect Industrial Competitiveness?

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  • KEVIN HONGLIN ZHANG
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    Abstract

    "Industrial competitiveness (IC), reflecting a country's ability to produce and export manufactures competitively, is closely associated with economic growth. How does globalization affect IC? While the topic is of great importance, empirical studies on the issue in the literature have been limited. This article attempts to close the gap by estimating the role of foreign direct investment (FDI) and international trade with cross-country data in 1985 and 1998. Taking advantage of a recently constructed IC index, we estimate several regression models of effects of FDI and trade on industrial performance. Results suggest that FDI and trade have a positive impact on IC, and increasing integration with the world economy through FDI and trade contributes to better industrial performance." ("JEL" F02, F10, F21, L60) Copyright (c) 2010 Western Economic Association International.

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    Bibliographic Info

    Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

    Volume (Year): 28 (2010)
    Issue (Month): 4 (October)
    Pages: 502-510

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    Handle: RePEc:bla:coecpo:v:28:y:2010:i:4:p:502-510

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