Abstract
This article investigates the bidirectional causal relationship between outbound foreign direct investment (ODI) and export sophistication in China by using autoregressive distributed lag (ARDL) techniques. The findings detect cointegration and bidirectional causal relationship between export sophistication and ODI. The empirical evidence supports that ODI strongly promotes export sophistication and export sophistication weakly encourages Chinese ODI to go out global. The nexus between ODI and export sophistication is good news for China to enhance the quality of exports and catch-up on developed economies. The control variables of trade openness, human capital and quality of institutions improve the strength of cointegration between ODI and export sophistication and play a significant role in promoting the two variables of our interest.
| Original language | English |
|---|---|
| Pages (from-to) | 357-365 |
| Number of pages | 9 |
| Journal | Applied Economics Letters |
| Volume | 27 |
| Issue number | 5 |
| DOIs | |
| State | Published - 11 Mar 2020 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth -
SDG 17 Partnerships for the Goals
Keywords
- ARDL
- China
- Export sophistication
- ODI
ASJC Scopus subject areas
- Economics and Econometrics
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