IDEAS home Printed from https://ideas.repec.org/a/oup/econjl/v130y2020i628p937-955..html
   My bibliography  Save this article

Climbing the Rungs of the Quality Ladder: FDI and Domestic Exporters in Romania

Author

Listed:
  • Matej Bajgar
  • Beata Javorcik

Abstract

This article argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005–11, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinational enterprises (MNEs) in the upstream (input-supplying) industries. Export quality is also positively related to MNE presence in the downstream (input-sourcing) industries and the same industry, but these relationships are less robust. These conclusions hold both when the product quality is proxied with unit values and when it is estimated following the approach of Khandelwal et al. (2013).

Suggested Citation

  • Matej Bajgar & Beata Javorcik, 2020. "Climbing the Rungs of the Quality Ladder: FDI and Domestic Exporters in Romania," The Economic Journal, Royal Economic Society, vol. 130(628), pages 937-955.
    • Handle: RePEc:oup:econjl:v:130:y:2020:i:628:p:937-955.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/ej/ueaa003
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krammer, Sorin, 2021. "Human Resource Policies And Firm Innovation: The Moderating Effects Of Economic And Institutional Context," MPRA Paper 109486, University Library of Munich, Germany.
    2. Bao, Xiaohua & Gao, Lei & Jin, Yu & Sun, Jin, 2023. "Industrial agglomeration and firm exports: Micro-evidence based on input-output linkages," Economic Modelling, Elsevier, vol. 119(C).
    3. Weixiao Wu & Chang Hong, 2023. "How processing trade assists local industrial upgrading: input–output analysis of export processing zones in China," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(2), pages 369-397, June.
    4. Blanga-Gubbay, Michael & Rubínová, Stela, 2023. "Foreign direct investment, trade and economic development: An overview," WTO Staff Working Papers ERSD-2023-11, World Trade Organization (WTO), Economic Research and Statistics Division.
    5. Görg, Holger & Lehr, Jakob, 2024. "Short and medium-term effects of foreign acquisitions on manufacturing firms: Evidence from Germany," Open Access Publications from Kiel Institute for the World Economy 302104, Kiel Institute for the World Economy (IfW Kiel).
    6. Di Ubaldo, Mattia & Siedschlag, Iulia, 2022. "Could spillovers from multinationals affect the trade activities of local firms?," Economics Letters, Elsevier, vol. 221(C).
    7. Krammer, Sorin M.S., 2022. "Human resource policies and firm innovation: The moderating effects of economic and institutional context," Technovation, Elsevier, vol. 110(C).
    8. Bergin, Adele & Curristan, Sarah & Farrell, Niall & Laurence, James & Lynch, Muireann Á. & McGinnity, Frances & McGuinness, Seamus & Russell, Helen & Smyth, Emer, 2022. "Scoping papers for research on ‘The economic and social opportunities from increased cooperation on the Shared Island'," Research Series, Economic and Social Research Institute (ESRI), number SUSTAT112.
    9. Jamil, Nida & Chaudhry, Theresa Thompson & Chaudhry, Azam, 2022. "Trading textiles along the new silk route: The impact on Pakistani firms of gaining market access to China," Journal of Development Economics, Elsevier, vol. 158(C).
    10. Stavros Poupakis, 2022. "Does FDI in Upstream and Downstream Sectors Facilitate Quality Upgrading? Evidence from Russian Exporters," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(2), pages 451-471, April.
    11. DeStefano, Timothy & Timmis, Jonathan, 2024. "Robots and export quality," Journal of Development Economics, Elsevier, vol. 168(C).
    12. Ciani, Andrea & Mau, Karsten, 2023. "Delivery times in international competition: An empirical investigation," Journal of Development Economics, Elsevier, vol. 161(C).
    13. Mazouz, Khelifa & Wood, Geoffrey & Yin, Shuxing & Zhang, Mao, 2021. "Comprehending the outward FDI from Latin America and OCED: A comparative perspective," International Business Review, Elsevier, vol. 30(5).
    14. Poupakis,Stavros, 2020. "Are Inflows of FDI Good for Russian Exporters ?," Policy Research Working Paper Series 9201, The World Bank.
    15. Fernandes,Ana Margarida & Lefebvre,Kevin Jean-Rene & Rocha,Nadia, 2021. "Heterogeneous Impacts of SPS and TBT Regulations : Firm-Level Evidence from Deep Trade Agreements," Policy Research Working Paper Series 9700, The World Bank.
    16. Michele Imbruno, 2022. "Export adjustment to input trade liberalization: The role of import wholesaling services," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 764-795, August.
    17. Saito, Hisamitsu, 2021. "Foreign direct investment and quality upgrading in Indonesian manufacturing," MPRA Paper 106770, University Library of Munich, Germany.
    18. DeStefano,Timothy & Timmis,Jonathan David, 2021. "Robots and Export Quality," Policy Research Working Paper Series 9678, The World Bank.
    19. Siedschlag, Iulia & Yan, Weijie, 2021. "Enhancing the attractiveness of the all-island economy to high-value sectors," Research Series, Economic and Social Research Institute (ESRI), number RS133.
    20. Hong, Shengjie & Su, Liangjun & Jiang, Tao, 2023. "Profile GMM estimation of panel data models with interactive fixed effects," Journal of Econometrics, Elsevier, vol. 235(2), pages 927-948.
    21. Abegaz, Melaku & Nene, Gibson, 2022. "Export agglomeration economies in Sub-Saharan Africa manufacturing and service sectors," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 40-51.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:econjl:v:130:y:2020:i:628:p:937-955.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.