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FDI and Trade Outcomes at the Industry Level—A Data-Driven Approach

Jean-Christophe Maur, Milan Nedeljkovic and Erik von Uexkull

No 9901, Policy Research Working Paper Series from The World Bank

Abstract: This paper proposes a novel empirical methodology to reveal factors associated with foreign direct investment decisions and export success at the industry level. Faced with large amounts of policy and economic indicators, as well as significant product and sectoral diversity, the motivation of this research is twofold. First, it selects among the vast number of indicators and potential factors relevant to investment and trade outcomes a manageable subset of variables that can usefully guide the understanding of investment and trade outcomes. Second, it provides robust estimates of how these variables affect the probability at the margin of investment and trade outcomes at the sector level. Finally, the paper uses these estimates to produce new metrics (“scores”) of trade and investment climate performance at the country and sectoral levels.

Keywords: International Trade and Trade Rules; Investment and Investment Climate; Financial Sector Policy; Business Environment; Trade Policy (search for similar items in EconPapers)
Date: 2022-01-13
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:9901

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