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The Impact of Services FDI on Services Exports in NICs

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  • Syed Hasanat Shah
  • Syed Ali Raza

Abstract

This paper investigates the impact of services FDI inflows on services exports in Newly Industrialised countries (NICs) by employing panel data techniques. FDI inflows in Services are a good tool to connect local services producers to the global value chain and boost services exports. The findings in the paper suggest that FDI inflows in services sector significantly contribute to services exports in NICs. Recently, many NICs countries wanted to strategically shift their reliance from manufacturing export to services export and our findings support this policy shift. Beside FDI inflows in services, increase in global demand for services and improvement of local infrastructure in NICs positively contribute to services exports in NICs.

Suggested Citation

  • Syed Hasanat Shah & Syed Ali Raza, 2022. "The Impact of Services FDI on Services Exports in NICs," Economic Papers, The Economic Society of Australia, vol. 41(2), pages 176-181, June.
    • Handle: RePEc:bla:econpa:v:41:y:2022:i:2:p:176-181
    DOI: 10.1111/1759-3441.12333
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    References listed on IDEAS

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    1. Anita Ghatak & Ferda Halicioglu, 2007. "Foreign direct investment and economic growth: some evidence from across the world," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 9(4), pages 381-394.
    2. Syed Hasanat Shah & Mohsin Hasnain Ahmad & Qazi Masood Ahmed, 2016. "The nexus between sectoral FDI and institutional quality: empirical evidence from Pakistan," Applied Economics, Taylor & Francis Journals, vol. 48(17), pages 1591-1601, April.
    3. Kishor Sharma & Wei Wang, 2014. "Foreign Investment and Vertical Specialisation: An Analysis of Emerging Trends in Chinese Exports," Proceedings of Economics and Finance Conferences 0401580, International Institute of Social and Economic Sciences.
    4. Deborah L. Swenson, 2004. "Foreign Investment and the Mediation of Trade Flows," Review of International Economics, Wiley Blackwell, vol. 12(4), pages 609-629, September.
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    Cited by:

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    2. Georgeta Ilie, 2024. "The Contribution Of Foreign Direct Investment To The Development Of Romania'S Trade In Services," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 12(2), pages 60-72, December.
    3. Ashraf Mishrif & Asharul Khan, 2024. "Do Free Trade Agreements Facilitate FDI Spillover Effects on Domestic Firms? Empirical Evidence from Oman," Economies, MDPI, vol. 12(6), pages 1-23, June.

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