Original scientific paper
https://doi.org/10.1080/1331677X.2022.2164035
Sustainable FDI and comparative advantage for product export survival: a developing countries perspective
Muhammad Adnan Bashir
Zhao Dengfeng
Magdalena Radulescu
Carmen Gabriela Secara
Claudia Staciu-Tolea
Zhonghang Gong
Abstract
Establishing stable export relations is significant for developing
countries to realize industrialization through exporting manufactured
products. Based on the export data of 100 developing countries
on the product level from 1999 to 2015, this paper empirically
explores the relationship between FDI and product export survival
of the host country using the survival analysis model. The estimations
show that FDI is conducive to the extension of the export duration
of domestic products, and this effect is more evident in
products with comparative advantages. Mechanism inspections
prove that FDIs extend the export duration of products by improving
their quality. To overcome endogenous problems, this paper
establishes instrumental variables of FDI based on population and
geographical factors. The results of the two-stage least square
regression support the conclusions derived from the benchmark
regression. This paper provides new empirical evidence for the role
of FDI in export promotion and resource allocation.
Keywords
FDI; comparative advantage; export survival; resource misallocation; developing countries
Hrčak ID:
319252
URI
Publication date:
13.1.2023.
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