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Impact of South–South FDI and Trade on the Export Upgrading of African Economies

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  • Amighini, Alessia
  • Sanfilippo, Marco

Abstract

We explore the impact of FDI and imports on the upgrading of African exports. We find that South–South flows impact differently from North–South ones on the ability of recipients to absorb the positive spillovers. Results support the view that South–South integration has a strong potential for accelerating structural transformation in the continent. South–South FDI foster diversification in key low-tech industries such as agro-industry and textiles, and raise the average quality of manufacturing exports, while importing from the South increases the ability to expand the variety of manufactured exports and to introduce more advanced goods in less-diversified economies.

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  • Amighini, Alessia & Sanfilippo, Marco, 2014. "Impact of South–South FDI and Trade on the Export Upgrading of African Economies," World Development, Elsevier, vol. 64(C), pages 1-17.
  • Handle: RePEc:eee:wdevel:v:64:y:2014:i:c:p:1-17
    DOI: 10.1016/j.worlddev.2014.05.021
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    Cited by:

    1. Clement Anne, 2016. "Are Commodity Price Booms an Opportunity to Diversify? Evidence from Resource-dependent Countries," Working Papers halshs-01381143, HAL.
    2. Marco Sanfilippo & Adnan Seric, 2016. "Spillovers from agglomerations and inward FDI: a multilevel analysis on sub-Saharan African firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 147-176, February.
    3. Wenxi Lu, 2018. "FDI, Service imports and Export development," School of Economics Working Papers 2018-05, University of Adelaide, School of Economics.
    4. repec:bla:afrdev:v:29:y:2017:i:2:p:139-154 is not listed on IDEAS
    5. Shengjun Zhu & Canfei He & Yi Zhou, 2015. "How to jump further? Path dependent and path breaking in an uneven industry space," Papers in Evolutionary Economic Geography (PEEG) 1524, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2015.
    6. Clement ANNE, 2016. "Are Commodity Price Booms an Opportunity to Diversify? Evidence from Resource-dependent Countries," Working Papers 201615, CERDI.
    7. repec:bla:worlde:v:39:y:2016:i:12:p:2000-2024 is not listed on IDEAS
    8. Robert Gold & Holger Görg & Aoife Hanley & Adnan Seric, 2017. "South–South FDI: is it really different?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(4), pages 657-673, November.
    9. repec:wsi:jicepx:v:08:y:2017:i:02:n:s1793993317500107 is not listed on IDEAS
    10. Demir, Firat, 2016. "Effects of FDI Flows on Institutional Development: Does It Matter Where the Investors are from?," World Development, Elsevier, vol. 78(C), pages 341-359.
    11. Vito Amendolagine & Nicola D. Coniglio, 2014. "Economic Enclaves or Bridges to the Global Economy? Foreign and Diaspora Investments in Developing Countries," RSCAS Working Papers 2014/10, European University Institute.
    12. Holger Görg & Adnan Seric, 2016. "Linkages with Multinationals and Domestic Firm Performance: The Role of Assistance for Local Firms," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(4), pages 605-624, September.
    13. repec:eee:wdevel:v:98:y:2017:i:c:p:381-399 is not listed on IDEAS
    14. Huiying Zhang & Xiaohui Yang, 2016. "Intellectual Property Rights and Export Sophistication," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-19, October.
    15. repec:ksa:szemle:1720 is not listed on IDEAS

    More about this item

    Keywords

    South–South FDI; South–South trade; export diversification; export upgrading; Africa;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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