New and Improved: Does FDI Boost Production Complexity in Host Countries?
By B. Javorcik, A. Turco, D. Maggioni. 2018
139 citations recorded by the source corpus.
This paper examines the relationship between the presence of foreign affiliates and product upgrading by Turkish manufacturing firms. The analysis suggests that Turkish firms in sectors and regions more likely to supply foreign affiliates tend to introduce more complex products, where complexity is captured using a measure developed by Hausmann and Hidalgo (2009). This finding is robust to controlling for omitted variables, sample selection and potential simultaneity bias. It is also in line with the view that inflows of foreign direct investment stimulate upgrading of indigenous production capabilities in host countries.
Subfields: Economics and Econometrics, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/6d19c9f1571ed89f9e028ed152488a8b226a998f
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In Economics and Econometrics
In Strategy and Management
Citations in the corpus
- Economic complexity and the green economy (2020, methodology): “The PCI has often been used as a proxy for the technological sophistication of products (Felipe et al., 2012; Poncet and de Waldemar, 2013; Javorcik et al., 2018).”