Outward FDI and exports relation: A heterogeneous panel approach dealing with cross-sectional dependence

Adolfo Maza and Paula Gutiérrez-Portilla

International Economics, 2022, vol. 170, issue C, 174-189

Abstract: This paper explores the link between outward foreign direct investment (OFDI) and exports using Spain's flows to the top-50 recipient countries over the period 1995–2019. Methodologically, it addresses two often forgotten features of spatial data (heterogeneity and cross-sectional dependence) by combining a heterogeneous panel approach with the treatment of cross-sectional dependence. Indeed, when addressing cross-sectional dependence, it removes one of its two components (spatial dependence) so that comparing raw and spatially filtered data yields relevant conclusions. Findings show that OFDI has a significant positive effect on exports in the long term, but it is exclusively due to spatial dependence.

Keywords: Outward foreign direct investment; Exports; Heterogeneous panel; Cross-sectional dependence; Spatial dependence (search for similar items in EconPapers)
JEL-codes: F10 F21 F40 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2110701722000300
Full text for ScienceDirect subscribers only

Related works:
Journal Article: Outward FDI and exports relation: A heterogeneous panel approach dealing with cross-sectional dependence (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:inteco:v:170:y:2022:i:c:p:174-189

DOI: 10.1016/j.inteco.2022.04.002

Access Statistics for this article

International Economics is currently edited by Valerie Mignon and Marcelo Olarreaga

More articles in International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().