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Export Sophistication and Outward FDI in Developing Countries

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  • Jie Li

    (School of Economics and Management, East China Jiaotong University, China)

Abstract

Using panel data of Brazil, Russia, India, China and South Africa (BRICS) from 1990 to 2010, we find strong evidence that outward FDI from BRICS is significantly associated with “better exports, measured by EXPY, an index developed by Hausmann et al. (2007). Every 1% increase in outward FDI leads to around 0.1% improvement in export sophistication (EXPY). Meanwhile, inward FDI does not seem to improve BRICS’ export sophistication.

Suggested Citation

  • Jie Li, 2019. "Export Sophistication and Outward FDI in Developing Countries," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(03), pages 1-23, October.
    • Handle: RePEc:wsi:jicepx:v:10:y:2019:i:03:n:s1793993319500170
    DOI: 10.1142/S1793993319500170
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    References listed on IDEAS

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    Cited by:

    1. Chen, Jiandong & Xie, Qiaoli & Shahbaz, Muhammad & Song, Malin & Wu, Yuliang, 2021. "The fossil energy trade relations among BRICS countries," Energy, Elsevier, vol. 217(C).

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