FDI and Export Upgrading
The debate on trade and growth increasingly focuses on the composition of exports.� Exports of more "sophisticated" products appear to be positively correlated with growth, and upgrading the quality of exports is high on the policy agenda of many countries.� This study presents evidence suggesting that attracting inflows of FDI offers potential for raising the quality of exports in developing countries.� Our empirical analysis relates unit values of exports measured at the 4-digit SITC level to data on sectors treated by investment promotion agencies as priority in their efforts to attract FDI.� The sample covers 105 countries over the period 1984-2000.� The findings are consistent with a positive effect of FDI on unit values of exports in developing countries.� The evidence for high income economies is ambiguous.� When we examine the link between FDI and the overlap between the export structure of developing and high income economies ("export sophistication"), we find no evidence of FDI increasing the similarity of export structure between the two groups.
|Date of creation:||01 Jan 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.economics.ox.ac.uk/Email:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Amit Khandelwal, 2009.
"The Long and Short (of) Quality Ladders,"
NBER Working Papers
15178, National Bureau of Economic Research, Inc.
- Deborah L. Swenson, 2008.
"Multinationals and the creation of Chinese trade linkages,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 41(2), pages 596-618, May.
- Deborah L. Swenson, 2007. "Multinationals and the Creation of Chinese Trade Linkages," NBER Working Papers 13271, National Bureau of Economic Research, Inc.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994.
"Spillovers, Foreign Investment and Export Behavior,"
95-06, Columbia - Graduate School of Business.
- Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
- Brian Aitken & Gordon H. Hanson & Ann E. Harrison, 1994. "Spillovers, Foreign Investment, and Export Behavior," NBER Working Papers 4967, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:526. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Wise)
If references are entirely missing, you can add them using this form.