Can FDI promote export diversification and sophistication of host countries? : dynamic panel system GMM analysis
Data(s) |
01/05/2012
01/05/2012
01/03/2012
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Resumo |
Recent trade literature highlights the importance of export diversification and upgrading in fostering faster and sustainable economic growth. This study investigates the impact of FDI inflow and stock on the level of export diversification and sophistication in host country's export baskets. By utilizing the dynamic panel data model, we find that the five-year lagged FDI inflow correlates positively with both export diversification and sophistication, and FDI stock makes the positive contribution to export sophistication. These findings provide support for the possibility of successful capabilities transfer to and building by local firms. We also find that these positive impacts of FDI exist only in developing countries. |
Identificador |
IDE Discussion Paper. No. 347. 2012.3 http://hdl.handle.net/2344/1139 IDE Discussion Paper 347 |
Idioma(s) |
en eng |
Publicador |
Institute of Developing Economies, JETRO 日本貿易振興機構アジア経済研究所 |
Palavras-Chave | #Developing countries #Foreign investments #International trade #FDI #Export diversification #Export sophistication #Capabilities transfer #338.92 #C Developing countries 発展途上国 #F10 - General #F21 - International Investment; #O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology |
Tipo |
Working Paper Technical Report |