Foreign Direct Investment and Export Upgrading

By Torfinn Harding, B. Javorcik. Review of Economics and Statistics, 2012

236 citations recorded by the source corpus.

Abstract This study presents evidence suggesting that attracting foreign direct investment (FDI) offers potential for raising the quality of exports in developing countries. Our analysis relates unit values of exports at the four-digit SITC level to data on sectors treated by investment promotion agencies as a priority in their efforts to attract FDI. The sample covers 105 countries from 1984 to 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. There is no indication that FDI increases the similarity of export structure of developing and developed economies.

Subfields: Development, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/14cdb634da3d02731d5eb8bad18f86b12625e6d0

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Citations in the corpus

Economic upgrading through global value chain participation: which policies increase the value-added gains? (2017, background): “Investment promotion contributes to bringing in firms that should have higher spillover potential, given their quality and technology position (Harding and Javorcik 2012).”
What is Real and What is Not in the Global FDI Network? (2019, unknown): “To focus on Real FDI, we drop corporations with characteristics resembling SPEs: at most five employees and assets per employee exceeding $10 million.(23) (21)Specifically, we ignore the breakdown on ultimate investor economies reported to the OECD in two instances: (i) when less than 50 percent of ”
How important is GVC participation to export upgrading?* (2021, background): “…such as capital deepening, investment in R&D, FDI, imports, technology transfer, human capital development, institutional quality, factor endowments and access to credit (Faruq, 2011; Harding & Javorcik, 2012; Zhu & Fu, 2013; Amighini & Sanfilippo, 2014; Crino & Ogliari, 2017; Xu & Mao, 2018).”