Complementarity or substitutability between

Complementarity or substitutability between

FDI and exports, that is the question Complementarity or substitutability between and exports. That is the question on Twitter Share on Facebook Share on LinkedIn Share on . Google Plus University of Cantabria. In recent decades, both foreign direct investment and, although to a lesser extent, trade, have grown considerably around the world. Mainly due to economic integration processes. Consequently. There are numerous works that address this branch of literature from multiple perspectives. One of them. Very interesting. Is the one that aims to find out if the outflows of foreign direct investment  country’s exports are complementary or if, on the contrary.  They have a substitutive nature.

This is because FDI, considered as the

Reallocation of capital to foreign countries, can substitute for domestic investment and exports, raising concerns not only about balance of payments outcomes.  But also, and to some extent, most importantly, due to its effects on national employment. Given the relevance of the topic, there are Turkey WhatsApp Number Data  numerous theoretical works that address this issue, some advocating complementarity while others suggest substitutability. Likewise, there are many articles of a more empirical nature that, to a greater or lesser extent.  Test the validity of these theories. Within this last group, today I want to briefly review a work recently published together with . The first thing I want to point out, although it is evident that methodological issues cannot have much room in this blog. Is that the article covers some important gaps that  in this branch of literature: the treatment of the heterogeneity of the parameters and the existence of transversal dependency.

Furthermore, the document innovates

In the treatment of transversal dependency, which may be due to the presence of common factors not observed in all territorial units or, and this is where we put the emphasis, to the existence of spatial dependency. To understand the Thailand WhatsApp Number List  methodological issues, however, I refer the specialized. There are two main reasons why we chose Spain as a case study. On the one hand, our country has proven to be an important player in the field of FDI, not only in.  We use is quite demanding in terms of data and Spain is one of the few countries that has a long and  sample period for bilateral flows . Between work on the Spanish economy are mixed and. Therefore, do not provide conclusive evidence. This study attempts to shed more light on this issue. Turning now to the results. They highlight the existence of complementarity between FDI and exports.

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