Trade Productivity Upgrading, Trade Fragmentation, and FDI in Manufacturing: The Asian Development Experience
AbstractThis paper examines the experience of 10 Asian countries with respect to growth, trade and FDI. It explores relationships between the nature of exports and imports and growth, as well as the relevance of FDI as a channel for these relationships. We find that FDI is often positively correlated with higher productivity levels in exports and imports. The effect for imports is particularly apparent for imported intermediate goods, reflecting the emergence of greater trade fragmentation. In turn, both imported intermediates and exports that are associated with higher productivity levels are positively correlated with per capita GDP. This paper therefore brings together empirical evidence that integrates discussions of FDI, trade fragmentation and improvements in the productivity of traded goods.
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Bibliographic InfoPaper provided by Department of Economics, UC Santa Cruz in its series Santa Cruz Department of Economics, Working Paper Series with number qt1d62r9n5.
Date of creation: 03 Mar 2012
Date of revision:
Social and Behavioral Sciences; international trade; trade policy; product upgrading; trade fragmentation; vertical specialization; FDI; economic development;
Other versions of this item:
- Jesse Mora & Nirvikar Singh, 2013. "Trade productivity upgrading, trade fragmentation, and FDI in manufacturing: The Asian development experience," Indian Growth and Development Review, Emerald Group Publishing, vol. 6(1), pages 61-87, March.
- Mora, Jesse & Singh, Nirvikar, 2012. "Trade Productivity Upgrading, Trade Fragmentation, and FDI in Manufacturing: The Asian Development Experience," MPRA Paper 37127, University Library of Munich, Germany.
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-03 (All new papers)
- NEP-CWA-2012-09-03 (Central & Western Asia)
- NEP-INT-2012-09-03 (International Trade)
- NEP-SEA-2012-09-03 (South East Asia)
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