Please use this identifier to cite or link to this item: http://hdl.handle.net/2445/58976
Title: On the dynamics of exports and FDI: The Spanish Internationalization Process
Author: Martínez-Martín, Jaime
Keywords: Inversions estrangeres
Exportacions
Econometria
Foreign investments
Exports
Econometrics
Issue Date: 2010
Publisher: Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública
Abstract: This paper provides further insights into the dynamics of exports and outward foreign direct investment (FDI) flows in Spain from a time-series approach. The contribution of the paper is twofold: 1) the existence of either substitution or a complementary relationship between Spanish outward investments and exports is empirically tested using a multivariate cointegrated model (VECM). The evolution in exchange flows (1993-2008) and country-specific variables (such as world demand - including Spain’s main recently growing foreign markets - for trade flows and the relative price of exports in order to proxy new global competitors) are taken into account for the first time. And 2) the growth in the trade of services in recent decades leads us to test a specific causality relationship by disaggregating between goods and services flows. Our results provide evidence of a positive (Granger) causality relationship running from FDI to exports of goods (stronger) and to exports of services (weaker) in the long run, the complementarity relation of which is consistent with vertical FDI strategies. In the short run, however, only exports of goods are affected (positively) by FDIs.
Note: Reproducció del document publicat a: http://www.ub.edu/irea/working_papers/2010/201010.pdf
It is part of: IREA – Working Papers, 2010, IR10/010
URI: http://hdl.handle.net/2445/58976
ISSN: 2014-1254
Appears in Collections:Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

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