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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 37127.
Date of creation: Mar 2012
Date of revision:
international trade; trade policy; product upgrading; trade fragmentation; vertical specialization; FDI and 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.
- Singh, Nirvikar & Mora, Jesse, 2012. "Trade Productivity Upgrading, Trade Fragmentation, and FDI in Manufacturing: The Asian Development Experience," Santa Cruz Department of Economics, Working Paper Series qt1d62r9n5, Department of Economics, UC Santa Cruz.
- 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-2012-03-14 (All new papers)
- NEP-CWA-2012-03-14 (Central & Western Asia)
- NEP-INT-2012-03-14 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pinelopi K. Goldberg & Amit Khandelwal & Nina Pavcnik & Petia Topalova, 2008.
"Imported Intermediate Inputs and Domestic Product Growth: Evidence from India,"
NBER Working Papers
14416, National Bureau of Economic Research, Inc.
- Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, MIT Press, vol. 125(4), pages 1727-1767, November.
- Pinelopi Goldberg & Amit Khandelwal & Nina Pavcnik & Petia Topalova, 2009. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," Working Papers 1179, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Alfaro, Laura & Hammel, Eliza, 2007. "Capital flows and capital goods," Journal of International Economics, Elsevier, vol. 72(1), pages 128-150, May.
- Deborah L. Swenson, 2012.
"The Influence of Chinese Trade Policy on Automobile Assembly and Parts,"
CESifo Economic Studies,
CESifo, vol. 58(4), pages 703-730, December.
- Deborah L. Swenson, 2011. "The Influence of Chinese Trade Policy on Automobile Assembly and Parts," CESifo Working Paper Series 3615, CESifo Group Munich.
- Dean, Judith & Fung, K.C. & Wang, Zhi, 2008. "How vertically specialized is Chinese trade?," BOFIT Discussion Papers 31/2008, Bank of Finland, Institute for Economies in Transition.
- Unctad, 2009. "Global Foreign Direct Investment In Decline," Transnational Corporations Review, Ottawa United Learning Academy, vol. 1(2), pages 1-3, June.
- Dean, Judith M. & Lovely, Mary E. & Mora, Jesse, 2009. "Decomposing China-Japan-U.S. trade: Vertical specialization, ownership, and organizational form," Journal of Asian Economics, Elsevier, vol. 20(6), pages 596-610, November.
- Kamal Saggi, 2002.
"Trade, Foreign Direct Investment, and International Technology Transfer: A Survey,"
World Bank Research Observer,
World Bank Group, vol. 17(2), pages 191-235, September.
- Saggi, Kamal, 2000. "Trade, foreign direct investment, and international technology transfer : a survey," Policy Research Working Paper Series 2349, The World Bank.
- David Hummels & Jun Ishii & Kei-Mu Yi, 1999.
"The nature and growth of vertical specialization in world trade,"
72, Federal Reserve Bank of New York.
- Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
- Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.