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Climbing the Rungs of the Quality Ladder

FDI and Domestic Exporters in Romania

Bibliographic Data

ID9706257
AuthorsMatej Bajgar (0000-0002-3780-7970, OECD; CERGE-EI), Beata Javorcik (University of Oxford; CEPR), Beata Smarzynska Javorcik (0000-0001-6089-6679, University of Oxford, corresponding author)
Year2020
Volume130
Issue628
Pages937-955
Publication date2020-05-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1093/ej/ueaa003
OpenAlexW2557073946
LanguageEN
Citations received9
References cited38

This article argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005–11, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinational enterprises (MNEs) in the upstream (input-supplying) industries. Export quality is also positively related to MNE presence in the downstream (input-sourcing) industries and the same industry, but these relationships are less robust. These conclusions hold both when the product quality is proxied with unit values and when it is estimated following the approach of Khandelwal et al. (2013)

Business · Downstream (manufacturing · Economics · Foreign direct investment · Industrial organization · International economics · International trade · Multinational corporation · Product (mathematics · Quality (philosophy · Romanian · Unit (ring theory · Upstream (networking · Engineering · Global trade and economics · International Business and FDI · International Development and Aid · Marketing

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Unique citing works9
Citations per year2,25
Citation span2022 - 2025 (4)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 9

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