Climbing the rungs of the quality ladder: FDI and domestic exporters in Romania

This paper argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005-2011, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinat...

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Príomhchruthaitheoirí: Bajgar, M, Javorcik, B
Formáid: Journal article
Foilsithe / Cruthaithe: Oxford University Press 2020
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author Bajgar, M
Javorcik, B
author_facet Bajgar, M
Javorcik, B
author_sort Bajgar, M
collection OXFORD
description This paper argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005-2011, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinational enterprises (MNEs) in the upstream (input-supplying) industries. Export quality is also positively related to MNE presence in the downstream (input-sourcing) industries and the same industry, but these relationships are less robust. These conclusions hold both when the product quality is proxied with unit values and when it is estimated following the approach of Khandelwal et al. (2013).
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spelling oxford-uuid:53eb4008-cff8-433d-acec-f8dedc444bc82022-03-26T16:34:35ZClimbing the rungs of the quality ladder: FDI and domestic exporters in RomaniaJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:53eb4008-cff8-433d-acec-f8dedc444bc8Symplectic Elements at OxfordOxford University Press2020Bajgar, MJavorcik, BThis paper argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005-2011, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinational enterprises (MNEs) in the upstream (input-supplying) industries. Export quality is also positively related to MNE presence in the downstream (input-sourcing) industries and the same industry, but these relationships are less robust. These conclusions hold both when the product quality is proxied with unit values and when it is estimated following the approach of Khandelwal et al. (2013).
spellingShingle Bajgar, M
Javorcik, B
Climbing the rungs of the quality ladder: FDI and domestic exporters in Romania
title Climbing the rungs of the quality ladder: FDI and domestic exporters in Romania
title_full Climbing the rungs of the quality ladder: FDI and domestic exporters in Romania
title_fullStr Climbing the rungs of the quality ladder: FDI and domestic exporters in Romania
title_full_unstemmed Climbing the rungs of the quality ladder: FDI and domestic exporters in Romania
title_short Climbing the rungs of the quality ladder: FDI and domestic exporters in Romania
title_sort climbing the rungs of the quality ladder fdi and domestic exporters in romania
work_keys_str_mv AT bajgarm climbingtherungsofthequalityladderfdianddomesticexportersinromania
AT javorcikb climbingtherungsofthequalityladderfdianddomesticexportersinromania