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The effect of outward foreign direct investment on home country's export: A case study on Taiwan, 1989--2006

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  • Peter C.Y. Chow

Abstract

The purpose of this study is to examine the effect of outward foreign direct investment (FDI) on home country's export in Taiwan since the late 1980s. By pooling the time series and cross-section data in a modified gravity model, the study analyzes the effect of outward FDI, both country by country and host groups as a whole, on Taiwan's exports. It is concluded that outward FDI has a complementary effect on home country's export in Taiwan, most significantly evidenced in China-bound investment, which accounted for most FDIs after the 1990s.

Suggested Citation

  • Peter C.Y. Chow, 2012. "The effect of outward foreign direct investment on home country's export: A case study on Taiwan, 1989--2006," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(5), pages 725-754, May.
    • Handle: RePEc:taf:jitecd:v:21:y:2012:i:5:p:725-754
    DOI: 10.1080/09638199.2010.493616
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