This paper explores the impact of a firm’s market-specific ownership linkages and trade complementarities on different dimensions of its exporting longevity. Unlike previous studies that were mostly based on country-product level data, this paper uses transaction-level trade data on the population of firms in Slovenia in the 2002–2011 period, matched with detailed origin/direction of inward/outward FDI information to determine a firm’s integration in international production networks. Our results indicate that firm’s bilateral inward and outward FDI flows with an export-destination country have a strong positive effect on a firm’s export survival in that market. Importance of market-specific ownership linkages for export duration is exclusively driven by intermediate goods which suggests prolonged export duration through production network involvement. However, the perseverance effect of bilateral FDI ties on export spells has been weakened during the crisis period. We find pronounced market- and product-related trade complementarities as either exporting or importing experience with the relevant market/product substantially improves the chances of a product-market export spell continuing. Finally, the risk of exports termination is lower for a firm’s core export products.
COBISS.SI-ID: 25515494
Empirical analyses of knowledge spillovers from foreign direct investment (FDI) offer mixed results; they find positive, neutral and negative FDI spillover effects. This lack of evidence mainly comes from the results of firm-level panel data analysis. This is important since this approach seems to be the most appropriate for estimating FDI spillovers. The paper takes a look at recent substantive and methodological developments in FDI spillover analysis, which have brought some more optimistic results with regard to FDI spillovers, and can help in further development in this field. The main substantive development relates to the introduction of a broad variety of sources of firm heterogeneity (foreign affiliates as well as local firms) in the analysis. Others include differentiation between vertical (inter-industry) and horizontal (intra-industry) spillovers, and host country absorptive capacity for knowledge spillovers. Methodological developments relate to distinguishing between technological/knowledge and productivity spillovers, improvement of modelling and estimation methods, and an increased amount and quality of data.
COBISS.SI-ID: 35673693
We explore patterns and trends in interactions involving manufacturing and services in international trade based on trade in value added data. The analysis results show a weak upward trend in the intensity of links between services and manufacturing from 2000 to 2014 in the EU. Foreign services gained in importance in the value added of manufacturing exports across all EU economies, and relatively more in new EU member states, including Slovenia. The analysis points to the dominant role played by services in international business processes, holding implications for public policies, firms' strategies and the directions of future research.
COBISS.SI-ID: 36168541