The impact of FDI on export performance: Empirical evidence
Journal
Ekonomski pogledi – Economic Outlook, Vol. 16. No.4
Date Issued
2014
Author(s)
Abstract
The objective of this paper is to investigate empirically the impact of the FDI
inflows on export performance of Macedonia and Turkey. To achieve this objective we
use a popular model of export and estimate two models. The first (benchmark) model
includes the real effective exchange rate, the potential GDP, trade liberalization and
export in the previous year. Along with these explanatory variables, in the second model
we include the FDI inflows variable. The results of the benchmark model indicate that
trade liberalization has a positive and significant impact on export. The export
performance is positively and significantly affected by the last year's exports. The
estimated coefficient of real effective exchange rate is not statistically significant. The
potential output has a positive impact on the increase of export but it is also statistically
not significant. The results of the second model indicate that FDI have a positive impact
on export performance of Macedonia and Turkey, but not significant.
inflows on export performance of Macedonia and Turkey. To achieve this objective we
use a popular model of export and estimate two models. The first (benchmark) model
includes the real effective exchange rate, the potential GDP, trade liberalization and
export in the previous year. Along with these explanatory variables, in the second model
we include the FDI inflows variable. The results of the benchmark model indicate that
trade liberalization has a positive and significant impact on export. The export
performance is positively and significantly affected by the last year's exports. The
estimated coefficient of real effective exchange rate is not statistically significant. The
potential output has a positive impact on the increase of export but it is also statistically
not significant. The results of the second model indicate that FDI have a positive impact
on export performance of Macedonia and Turkey, but not significant.
Subjects
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