Export-led Growth via Export Platform Strategies

Akinori Tomohara and Kazuhiko Yokota

World Economics, 2009, vol. 10, issue 4, 147-160

Abstract: Free trade agreements (FTAs) have the potential to impact FDI structures. Specifically, we explore when and how export platform strategies can result in export-led growth. A reduction in trade costs, including tariffs and non-tariff barriers, are likely to lead to export platform FDI. Cost advantages in a host country, as well as quality labour and scale economies, are also effective in attracting export platform FDI. We conclude that medium–high technology industries in low-income countries are likely to benefit from export platform FDI. A few indices are suggested to evaluate the conditions under which countries and industries can benefit from export platform FDI.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:wej:wldecn:399

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