Does FDI in Upstream and Downstream Sectors Facilitate Quality Upgrading? Evidence from Russian Exporters

Stavros Poupakis

Oxford Bulletin of Economics and Statistics, 2022, vol. 84, issue 2, 451-471

Abstract: This study examines whether foreign direct investment inflows facilitate upgrading of export quality in host countries. The analysis focuses on the Russian Federation and uses customs data merged with firm‐level information from ORBIS. The results show a positive relationship between the quality of products exported by domestic firms and the presence of foreign affiliates in the upstream (input‐supplying) industries. This relationship is present irrespective of export destination or FDI origin. The results are robust to using different proxies to measure product quality.

Date: 2022
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