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Export Platforms and the Industry-Specific FDI-Trade Relationship

Author

Listed:
  • Tadesse, Bedassa

    (University of Minnesota-Duluth)

  • Ryan, Michael

    (Western Michigan University)

Abstract

This paper examines how the industry-level FDI-export sales relationship is affected by the host nation’s status as an “export platform” (EP). Using Japanese FDI and export sales data into 35 host countries during the period 1989-1998 for 7 ISIC 2-digit industries, we find that the FDI-export sales relationship is industry-specific and sensitive to the host’s export platform status. Without accounting for the host’s EP status, we find a complementary relationship between FDI and export sales in some industries and a substitution between FDI and export sales in others. However, accounting for the host’s EP status changes the FDI-export sales relationship in several industries, implying that the FDI-export sales interaction is sensitive to the EP status of the FDI host countries.

Suggested Citation

  • Tadesse, Bedassa & Ryan, Michael, 2005. "Export Platforms and the Industry-Specific FDI-Trade Relationship," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 20, pages 644-671.
  • Handle: RePEc:ris:integr:0335
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    Citations

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    Cited by:

    1. I.M. Drapkin & S.A. Lukyanov & R.I. Groznykh, 2020. "Foreign Direct Investment and International Trade: Empirical Analysis of Mutual Influence," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(4), pages 441-457.
    2. Yu Fu & Agus Supriyadi & Tao Wang, 2018. "China’s Outward FDI in Indonesia: Spatial Patterns and Determinants," Sustainability, MDPI, vol. 10(12), pages 1-20, December.

    More about this item

    Keywords

    FDI; Trade; Export Platforms; Manufacturing Exports; Japan;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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