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Climbing the rungs of the quality ladder: FDI and domestic exporters in Romania

Abstract:
This paper argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005-2011, 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).
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1093/ej/ueaa003

Authors


More by this author
Institution:
University of Oxford
Division:
SSD
Department:
Economics
Oxford college:
All Souls College
Role:
Author


Publisher:
Oxford University Press
Journal:
Economic Journal More from this journal
Volume:
130
Issue:
628
Pages:
937–955
Publication date:
2020-01-15
Acceptance date:
2019-11-06
DOI:
EISSN:
1468-0297
ISSN:
0013-0133


Pubs id:
pubs:1070549
UUID:
uuid:53eb4008-cff8-433d-acec-f8dedc444bc8
Local pid:
pubs:1070549
Source identifiers:
1070549
Deposit date:
2019-11-08

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