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Export Upgrading and FDI: New Evidence from Brazil

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  • Bruscatto Bortoluzzo, Adriana
  • Campos, Camila F S
  • Cavalcanti, Juliana

Abstract

This study presents additional evidence of the role of FDI flows in export upgrading. Using industry-level data on Brazilian FDI inflows, we show that FDI inflows promote export upgrading. Most importantly, we show that export sophistication occurs through the upgrading of goods exported to the same foreign market. We show that upgrading occurs in all sectors and that sophistication is slightly stronger for low-tech products. Keywords: Export Up- grading, FDI flows, sectoral evidence.

Suggested Citation

  • Bruscatto Bortoluzzo, Adriana & Campos, Camila F S & Cavalcanti, Juliana, 2021. "Export Upgrading and FDI: New Evidence from Brazil," MPRA Paper 116076, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:116076
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    File URL: https://mpra.ub.uni-muenchen.de/116076/1/MPRA_paper_116076.pdf
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    References listed on IDEAS

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    1. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
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    4. Gunby, Philip & Jin, Yinghua & Robert Reed, W., 2017. "Did FDI Really Cause Chinese Economic Growth? A Meta-Analysis," World Development, Elsevier, vol. 90(C), pages 242-255.
    5. Eric A. Verhoogen, 2008. "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 489-530.
    6. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    7. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2010. "Does foreign direct investment promote growth? Exploring the role of financial markets on linkages," Journal of Development Economics, Elsevier, vol. 91(2), pages 242-256, March.
    8. Demir, Firat & Duan, Yi, 2018. "Bilateral FDI Flows, Productivity Growth, and Convergence: The North vs. The South," World Development, Elsevier, vol. 101(C), pages 235-249.
    9. Colen, Liesbeth & Persyn, Damiaan & Guariso, Andrea, 2016. "Bilateral Investment Treaties and FDI: Does the Sector Matter?," World Development, Elsevier, vol. 83(C), pages 193-206.
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    Cited by:

    1. Omame, Andrew & Abbas, Mujahid & Din, Anwarud, 2023. "Global asymptotic stability, extinction and ergodic stationary distribution in a stochastic model for dual variants of SARS-CoV-2," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 204(C), pages 302-336.

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    More about this item

    Keywords

    FDI; Export Upgrading; International Trade; Emerging Economies;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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