 The Impact of FDI on EU Export Performance in Manufacturing and Services. A Dynamic Panel Data ApproachJournal for Economic Forecasting, 2018, issue 1, 108-123 Abstract: The purpose of this paper is to explain the export capacity in the EU countries based on FDI and domestic investment. We are interested to emphasize whether FDI contribute to export growth or the export performance is mainly explained by the domestic efforts. In this respect, we employ a dynamic panel data model using the GMM approach in the EU member states during the period from 1999 to 2012. As compared to other similar studies, our analysis checks for differences regarding the impact of FDI on trade in both the manufacturing and the services sectors. Also, the countries’ sample is divided into two groups: the new EU member states, which share a common history of economic transition, and the old EU member states, usually the most developed in the EU. In this way, we identify the potential disparities in the types of FDI and are able to suggest how public policies should be designed in order to foster both FDI and exports. Our empirical results suggest that the effect of FDI on exports is different depending on the group of countries and the type of economic activity. Keywords: exports; foreign direct investment; dynamic panel data; GMM; public policies (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:rjr:romjef:v::y:2018:i:1:p:108-123 Access Statistics for this article Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman More articles in Journal for Economic Forecasting from Institute for Economic Forecasting Contact information at EDIRC. |
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