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|
|Contact details of provider:|| Postal: Manor Rd. Building, Oxford, OX1 3UQ|
Web page: http://www.economics.ox.ac.uk/
More information through EDIRC
References listed on IDEAS
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.:
- Deborah L. Swenson, 2007.
"Multinationals and the Creation of Chinese Trade Linkages,"
NBER Working Papers
13271, 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.
- 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.
- 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.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994. "Spillovers, Foreign Investment and Export Behavior," Papers 95-06, Columbia - Graduate School of Business.
- Amit Khandelwal, 2007.
"The Long and Short (of) Quality Ladders,"
2007 Meeting Papers
244, Society for Economic Dynamics.
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: (Monica Birds)
If references are entirely missing, you can add them using this form.