scholarly journals Aid for Trade, export product diversification, and foreign direct investment

2021 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Product Diversification ◽  
Aid For Trade ◽  
Export Product ◽  
Export Product Diversification

Aid for Trade, Export Product Diversification and Foreign Direct Investment

2020 ◽  
Author(s):  
Sèna Kimm GNANGNON
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Product Diversification ◽  
Product Concentration ◽  
Fdi Inflows ◽  
Aid For Trade ◽  
High Level ◽  
Positive Effect ◽  
Export Product

Abstract The few existing studies on the relationship between Aid for Trade (AfT) flows and Foreign Direct Investment (FDI) inflows tend to report a positive effect of total AfT flows, in particular of Aid flows for building economic infrastructure, on FDI inflows. The present article aims to complement these works by investigating whether the effect of AfT flows on inward FDI stock depends on recipient-countries' level of export product concentration. The empirical analysis has shown that AfT flows exert a strong positive effect on inward FDI stock in countries that experience a high level of export product concentration. These findings are relevant for developing countries in light of the concentration of their export products on primary commodities, and given the strong role of FDI flows for employment generation, economic growth and development in these countries.

Export Product Diversification, Services Production and Exports in Least Developed Countries

2016 ◽  
Vol 07 (03) ◽  
pp. 1650013 ◽  
Author(s):  
Sèna Kimm Gnangnon ◽  
Shishir Priyadarshi
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developed Countries ◽  
Product Diversification ◽  
Least Developed Countries ◽  
Regulatory Quality ◽  
Per Capita ◽  
The Relationship ◽  
Export Product ◽  
Export Product Diversification

This paper investigates the relationship between the diversification of export products in least developed countries (LDCs) and their services production and exports. It uses a dataset comprising 30 LDCs over the period 1995–2010. The empirical results suggest strong evidence that export product diversification in LDCs is a catalyzer for their commercial services exports, alongside factors such as per capita income, foreign direct investment (FDI), and regulatory quality policies. However, export products diversification does not appear to exert a significant effect on LDC services production. These findings have important implications for both the international trade community and LDC governments.

TRADE POLICY SPACE AND EXPORT PRODUCT DIVERSIFICATION

2020 ◽  
Vol 65 (06) ◽  
pp. 1727-1752
Author(s):  
SÈNA KIMM GNANGNON
Keyword(s):  
Trade Policy ◽  
Positive Impact ◽  
Quantitative Measure ◽  
Product Diversification ◽  
Policy Space ◽  
Aid For Trade ◽  
The Impact ◽  
Positive Effect ◽  
Export Product ◽  
Export Product Diversification

This paper provides a quantitative measure of the concept of trade policy space, at the macroeconomic level, and examines its impact on export product diversification. Trade policy space has been defined as the room of manoeuvre available to a government once its current trade policy is depurated from the impact of structural domestic and international factors. The analysis has been carried out using an unbalanced panel dataset comprising 165 countries (both developed and developing countries) over the period 2002–2015. Results suggest that trade policy space is positively associated with export product diversification, and the higher countries’ development level, the greater is the magnitude of the positive effect of trade policy space on export product diversification. The analysis further shows for recipient-countries of Aid for Trade (AfT) flows that trade policy space is complementary with AfT inflows in inducing export product diversification. In particular, the higher the amounts of AfT inflows that accrue to these countries, the greater is the positive impact of trade policy space on export product diversification in AfT recipient-countries.

scholarly journals Export Diversification and Ecological Footprint: A Comparative Study on EKC Theory among Korea, Japan, and China

2018 ◽  
Vol 10 (10) ◽  
pp. 3657 ◽  
Author(s):  
Hongbo Liu ◽  
Hanho Kim ◽  
Shuanglu Liang ◽  
Oh-Sang Kwon
Keyword(s):  
Economic Development ◽  
Environmental Kuznets Curve ◽  
Ecological Footprint ◽  
Developed Countries ◽  
Product Diversification ◽  
Policy Implications ◽  
Export Market ◽  
Kuznets Curve ◽  
Export Product ◽  
Export Product Diversification

This study examines the Environmental Kuznets Curve (EKC) hypothesis by adopting a country’s ecological footprint as an indicator of environmental degradation in three East Asian countries: Japan, Korea, and China. During the development process, countries intend to balance between stabilizing export demand and maintaining sustainable economic improvement in the context of deteriorating global warming and climate change. The Environmental Kuznets Curve (henceforth, EKC) was originally developed to estimate the correlation between environment condition and economic development. In this paper, we started from the EKC model and adopted an Error Correction Methodology (henceforth, ECM) to estimate the EKC relationships in Japan, Korea (two developed countries), and China (a developing country) over the period of 1990 to 2013. Besides this, instead of only using Gross Domestic Product (henceforth, GDP), two subdivisions of trade diversification—export product diversification and export market diversification—are introduced as proxy variables for economic development in rectification of the EKC. The results demonstrate that both Korea and Japan satisfy the EKC theory by demonstrating an inverted U-shaped relationship between economic development and ecological footprint, while analysis based on data from China does not display the same tendency. For both export product diversification and market diversification, the more diversified the country’s export is, the bigger its ecological footprint. The policy implications of this econometric outcome are also discussed.

scholarly journals Aid for Trade Flows and Recipient-Countries’ Integration into the World Market for Services Exports: Do Merchandises Exports and Foreign Direct Investment Inflows Matter?

2020 ◽  
pp. 2350001 ◽  
Author(s):  
Sena Kimm Gnangnon ◽  
Susana Del Mar Ramirez Ramirez
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Export Performance ◽  
World Market ◽  
Fdi Inflows ◽  
Performance Effect ◽  
The World ◽  
Aid For Trade ◽  
The Empirical Analysis ◽  
Positive Effect

An important literature on the recipient-countries’ export performance effect of Aid for Trade (AfT) flows has focused on the goods side. The few existing studies on the services exports effects of AfT interventions have reached mixed results, reflecting a positive or weak effect. This study aims to complement these few studies by examining the effect of AfT flows on recipient-countries’ share of services exports in the world services exports (‘services export integration’), including through two main channels: their share of merchandises exports in the world merchandises exports (‘merchandises export integration’) and the size of Foreign Direct Investment (FDI) inflows. The empirical analysis, based on a sample of 105 countries over the period 2002–2016, has shown that these two channels definitely matter for the effect of AfT flows on countries’ services export integration. Specifically, by fostering countries’ merchandises export integration, AfT flows can promote their services export integration. Furthermore, promoting FDI inflows enhances the positive effect of AfT flows on countries’ services export integration.

scholarly journals Export Diversification and Financial Openness

2020 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Capita Income ◽  
Product Diversification ◽  
Empirical Literature ◽  
Export Diversification ◽  
Per Capita Income ◽  
Financial Openness ◽  
Generalized Methods Of Moments ◽  
Per Capita ◽  
Export Product ◽  
Export Product Diversification

This paper investigates empirically the effect of export diversification (i.e., both export product diversification and services export diversification) on financial openness, using a sample of 119 countries (including both developed and developing countries) over the period 1985-2014. Based on the Blundell and Bond's two-step system Generalized Methods of Moments, the analysis has revealed that both export product diversification and services export diversification influence positively financial openness. However, this outcome hides differentiated effects across countries in the full sample. Specially, countries with a very high real per capita income experience a positive effect of export concentration on financial openness, while for countries with a relatively lower per capita income, it is rather export diversification that drives positively financial openness. Interestingly, the effect of export diversification on financial openness depends on the size of external shocks that affect domestic economies, as well as countries' economic growth performance. Overall, these findings add to the empirical literature on the effect of international trade on financial openness by showing that both export product diversification and services export diversification matter for financial openness.

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