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Export-platform FDI: which impacts on the local production? (In French)

Author

Listed:
  • Huu Thanh Tam NGUYEN (LEREPS-GRES)
  • Med KECHIDI (LEREPS-GRES)

Abstract

The development of regional economic integration have enabled in the last 15 years the emergence and the evolution of a particular type of direct foreign investment; the DFI export platform. The firms’ strategies have been shifted from a strict export logic to an implantation logic accompanied by export. This paper analyzes the impacts of this type of investment on the host country. We study the effects of this investment on the production level of local firms and on the output level of final or intermediate goods. We consider the existence of technological spillovers from the foreign firm toward the local ones and their impact on the local firms’ demography. The model shows that the impact on the output level of final goods is ambiguous depending on the characteristics of these two dimensions, whereas the impact on the output level of intermediate goods hinges on the effects of competition and of rising demand.\r\n

Suggested Citation

  • Huu Thanh Tam NGUYEN (LEREPS-GRES) & Med KECHIDI (LEREPS-GRES), 2008. "Export-platform FDI: which impacts on the local production? (In French)," Cahiers du GRES (2002-2009) 2008-09, Groupement de Recherches Economiques et Sociales.
  • Handle: RePEc:grs:wpegrs:2008-09
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    File URL: http://cahiersdugres.u-bordeaux4.fr/2008/2008-09.pdf
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    Keywords

    Export-platform FDI; multinational firm; regional integration; local production;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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