Trade Productivity Upgrading, Trade Fragmentation, and FDI in Manufacturing: The Asian Development Experience

Jesse Mora and Nirvikar Singh

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the experience of 10 Asian countries with respect to growth, trade and FDI. It explores relationships between the nature of exports and imports and growth, as well as the relevance of FDI as a channel for these relationships. We find that FDI is often positively correlated with higher productivity levels in exports and imports. The effect for imports is particularly apparent for imported intermediate goods, reflecting the emergence of greater trade fragmentation. In turn, both imported intermediates and exports that are associated with higher productivity levels are positively correlated with per capita GDP. This paper therefore brings together empirical evidence that integrates discussions of FDI, trade fragmentation and improvements in the productivity of traded goods.

Keywords: international trade; trade policy; product upgrading; trade fragmentation; vertical specialization; FDI and economic development (search for similar items in EconPapers)
JEL-codes: F14 O1 O24 O33 (search for similar items in EconPapers)
Date: 2012-03
New Economics Papers: this item is included in nep-cwa and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Trade Productivity Upgrading, Trade Fragmentation, and FDI in Manufacturing: The Asian Development Experience (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:37127

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