New and Improved: Does FDI Boost Production Complexity in Host Countries?
Beata Javorcik,
Alessia Lo Turco and
Daniela Maggioni
Economic Journal, 2018, vol. 128, issue 614, 2507-2537
Abstract:
This article examines the relationship between the presence of foreign affiliates and product upgrading by Turkish manufacturing firms. The analysis suggests that Turkish firms in sectors and regions more likely to supply foreign affiliates tend to introduce more complex products, where complexity is captured using a measure developed by Hidalgo and Hausmann (). This finding is robust to controlling for omitted variables, sample selection and potential simultaneity bias. It is also in line with the view that inflows of foreign direct investment stimulate upgrading of indigenous production capabilities in host countries.
Date: 2018
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https://doi.org/10.1111/ecoj.12530
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Working Paper: New and Improved: Does FDI Boost Production Complexity in Host Countries? (2017) 
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Persistent link: https://EconPapers.repec.org/RePEc:wly:econjl:v:128:y:2018:i:614:p:2507-2537
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