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Does FDI Boost Production Complexity in Host Countries

Bibliographic Data

ID9717733
AuthorsBeata Smarzynska Javorcik (0000-0001-6089-6679, University of Oxford, corresponding author), Alessia Lo Turco (0000-0002-6739-8864, Marche Polytechnic University), Daniela Maggioni (0000-0002-4942-5486, Università Ca' Foscari Venezia)
Year2018
Volume128
Issue614
Pages2507-2537
Publication date2018-09-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12530
OpenAlexW2612265724
LanguageEN
Citations received32
References cited39

This article 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 Hidalgo and Hausmann (). 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

Business · Econometrics · Economics · Foreign direct investment · Host (biology · Indigenous · Industrial organization · Macroeconomics · Microeconomics · Product (mathematics · Production (economics · Sample (material · Selection (genetic algorithm · Selection bias · Simultaneity · Statistics · Turkish · Computer Science · Global Trade and Competitiveness · Global trade and economics · International Business and FDI · Mathematics

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Unique citing works32
Citations per year4
Citation span2018 - 2026 (9)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 32

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