FDI and Trade Outcomes at the Industry Level : A Data-Driven Approach
This paper proposes a novel empirical methodology to reveal factors associated with foreign direct investment decisions and export success at the industry level. Faced with large amounts of policy and economic indicators, as well as significant pro...
| Main Authors: | , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/310711642106825113/FDI-and-Trade-Outcomes-at-the-Industry-Level-A-Data-Driven-Approach http://hdl.handle.net/10986/36847 |
| Summary: | This paper proposes a novel empirical
methodology to reveal factors associated with foreign direct
investment decisions and export success at the industry
level. Faced with large amounts of policy and economic
indicators, as well as significant product and sectoral
diversity, the motivation of this research is twofold.
First, it selects among the vast number of indicators and
potential factors relevant to investment and trade outcomes
a manageable subset of variables that can usefully guide the
understanding of investment and trade outcomes. Second, it
provides robust estimates of how these variables affect the
probability at the margin of investment and trade outcomes
at the sector level. Finally, the paper uses these estimates
to produce new metrics (“scores”) of trade and investment
climate performance at the country and sectoral levels. |
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