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Does FDI in Upstream and Downstream Sectors Facilitate Quality Upgrading? Evidence from Russian Exporters

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  • Stavros Poupakis

Abstract

This study examines whether foreign direct investment inflows facilitate upgrading of export quality in host countries. The analysis focuses on the Russian Federation and uses customs data merged with firm‐level information from ORBIS. The results show a positive relationship between the quality of products exported by domestic firms and the presence of foreign affiliates in the upstream (input‐supplying) industries. This relationship is present irrespective of export destination or FDI origin. The results are robust to using different proxies to measure product quality.

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  • Stavros Poupakis, 2022. "Does FDI in Upstream and Downstream Sectors Facilitate Quality Upgrading? Evidence from Russian Exporters," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(2), pages 451-471, April.
    • Handle: RePEc:bla:obuest:v:84:y:2022:i:2:p:451-471
    DOI: 10.1111/obes.12427
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    Cited by:

    1. Igor Drapkin & Anna Fedyunina & Yuri Simachev, . "GVC spillovers on total factor productivity of local firms: evidence from the Russian Federation," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    2. Qian Feng & Hong Liu & Yuwei Liu & Hengyuan Zhao, 2023. "Selecting a Technological Progress Path and Upgrading Export Product Quality: Evidence From China," SAGE Open, , vol. 13(4), pages 21582440231, November.

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