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Export Sophistication and Outward FDI in Developing Countries

Jie Li

School of Economics and Management, East China Jiaotong University, China

https://doi.org/10.1142/S1793993319500170Cited by:6 (Source: Crossref)

Abstract

Using panel data of Brazil, Russia, India, China and South Africa (BRICS) from 1990 to 2010, we find strong evidence that outward FDI from BRICS is significantly associated with “better exports, measured by EXPY, an index developed by Hausmann et al. (2007). Every 1% increase in outward FDI leads to around 0.1% improvement in export sophistication (EXPY). Meanwhile, inward FDI does not seem to improve BRICS’ export sophistication.

Keywords:

JEL Classifications: F2, F4, F15

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